82% Of U.S. CDs Are Now Distributed By One Company & It’s Not Universal Music
Sony DADC which has acted as the U.S. CD distributor for three of the four major labels has transferred those rights to Knoxville, TN based Anderson Merchandisers. Anderson will now distribute Universal Music, Sony Music Entertainment and EMI CDs to every U.S. wholesaler and retailer.
According to the announcement, the purchase "means the vast majority of physical music sold in America will soon reach customers through Anderson." Warner Music Group, the one distribution holdout, had a U.S. music market share of 18.6% at the end of October 2011, down from 20% at the end of 2010 and falling, according to Nielson SoundScan.
According to the company, by some metrics CD sales are actually improving. Over the last six months, on a comparable store basis, the company's CD sales have increased over the prior year, according to Anderson.
In a statement, CEO Charlie Anderson said competitive pricing and "a more efficient, cost-effective distribution system helps" are making CDs a viable alternative again. "We will continue to work with the labels to help them realize that making music available at an affordable price is a good business decision."