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Edition: U.S. Article Comments (5) Save Email Print Reprints Most Popular Most Shared BP pegs spill at worst-case 100,000 bpd | Video 10:58am EDT New Jersey battles over tax on millionaires 20 Jun 2010 Factbox: Winners and losers from a firmer yuan 4:14am EDT Verizon offers FiOS try-out 12:24am EDT China unshackles currency ahead of G20 meeting | Video 11:37am EDT Miley Cyrus "no underwear" photo is fake, blogger says 15 Jun 2010 BP restarts drillship system after 10-hour lapse 19 Jun 2010 Music business badly needs Eminem's "Recovery" 11:00am EDT Wall Street rises as China move boosts resource shares | Video 10:10am EDT Putin boasts new jet fighter better than U.S. plane 17 Jun 2010 BP pegs spill at worst-case 100,000 bpd | Video 10:58am EDT Dell in talks with Google over Chrome OS 3:37am EDT Verizon offers FiOS try-out 12:24am EDT China unshackles currency ahead of G20 meeting | Video 11:37am EDT Factbox: Winners and losers from a firmer yuan 4:14am EDT New Jersey battles over tax on millionaires 20 Jun 2010 Shot grizzly tied to hiker death near Yellowstone 20 Jun 2010 German student attacks Hell's Angels with puppy 15 Jun 2010 Wall Street rises as China move boosts resource shares | Video 10:10am EDT Facebook '09 revenue neared $800 million 18 Jun 2010 Music business badly needs Eminem's "Recovery" Mon Jun 21, 2010 11:00am EDT LONDON (Reuters) - "Recovery," the new album from rapper Eminem, could not be more aptly named for a music business facing an alarming fall in sales so far this year. The Detroit star's seventh studio album hits shelves on Monday, a day earlier than planned after tracks leaked on to the Internet. It comes about a week after the release of Canadian artist Drake's debut "Thank Me Later," which is also expected to perform strongly. Entertainment | Music But the duo are unlikely to lift the gloom hanging over the music business for long, with year-to-date U.S. physical and digital album sales by early June down 11 percent year-on-year to 130.6 million, extending a decade-long decline. To make matters worse, the recent boom in touring, which labels and bands sought to exploit as recorded music faded, is showing signs of weakness caused by high ticket prices and economic uncertainty, and digital download growth is slowing. Official figures for the key U.S. market as it approaches mid-year show how tough conditions are for music companies and acts who blame illegal file sharing for their woes. According to Nielsen Soundscan, which tracks sales, 4.98 million albums were sold in the week ending May 30, possibly the lowest figure since the early 1970s. By comparison, the record one-week tally set in December 2000 was 45.4 million. Analysts put the low figure down to a weak lineup during that particular week, and Drake's record is forecast to be one of the largest launches of the year so far while Eminem, another "tentpole" album, follows hot on its heels. CDs STILL CRUCIAL Yet while major and independent labels are pinning their future on digital music, whether it is access models or actual ownership, they can ill afford to abandon physical sales which account for somewhere in the region of 70 percent of revenues. "The physical format is in decline, but I don't think it will go away completely," said Ed Christman, who tracks music sales for industry publication Billboard. "What you want to do, since the digital 'magical bullet' hasn't appeared, is to sustain your revenue from CD sales for as long as you can." Although relatively small in terms of a label's revenues, digital streaming, downloading, online subscriptions and advertising are seen as key to the industry's future. "The revenue is still small, but at least it's revenue," said one major label executive. "Don't forget, some 95 percent of the digital market is illegal. If we can grow that five percent significantly, we've got a future." That task is proving slow going, and while a recent report from PricewaterhouseCoopers predicts that the music industry will return to growth in 2013, some analysts are less sure. "Given the incredible number of ways a person can now listen to music for free or near free, that gap between interest and willingness to pay is the biggest hurdle in record labels' quest to grow digital revenues," Billboard said of the report. In the short term, all eyes will be on Eminem, one of the world's best-selling artists of the last decade who has said in interviews to promote Recovery that he is over his prescription drug addiction, is sober and more tolerant than he used to be. Whether the "nice guy" image appeals to fans is unclear. Early reaction to the album, out on Universal Music Group's Interscope label, has been mixed. London's Evening Standard was among the most positive with a four-star review that concluded: "After seven albums, Eminem is so far ahead of the pack he only has himself to compete with. Even by that measurement, he's winning." The Independent was less glowing, stating: "If we're being brutally frank, I think we already know far more about Eminem's private life and his alleged mental torment than is probably healthy for us, let alone the rapper himself." (Reporting by Mike Collett-White, editing by Paul Casciato) Entertainment Music Comments See All Comments (5) | Post Comment Jun 21, 2010 11:07am EDT Maybe if there was some decent music out there, someone would actually buy it. No decent music has emerged since the 90’s grunge era. What’s next? stewpidasole Report As Abusive Jun 21, 2010 11:34am EDT No! This will not ’save’ anything. Just like newspapers and magazines and ‘yellow pages’ albums will be abandoned. Maybe open up a combo Block Buster/Tower Records, na that won’t work either. Yes, when I was a kid I remember going to single screen movie……… 2fnmuch Report As Abusive Jun 21, 2010 11:42am EDT Sales have declined because the musical quality is something you don’t hear on pop radio stations anymore. What you hear are songs that sound exactly the same, which makes sense because they’re all written by the same people and produced by the same people. Everything from the quality of the mix-down, the melodies, the repetitiveness in general, and even the SUBSTANCE itself, especially with pop and hiphop has fallen off a cliff over the past 10 – 15 years. People have grown tired of the lack of substance and laziness by today’s “artists”, so is it surprising that sales are down? I think that when artists and labels understand that people want something REAL, not dumbed down artificial/superficial nonsense, sales will skyrocket. But they are clueless. ChillnVilln557 Report As Abusive Jun 21, 2010 11:45am EDT The music industry needs a Enema more than it needs a Eminem or maybe its the other way around. Enforcing the same bad business model that has turned it into a .99 cent store of low quality mp3’s and controlled by a few large monopolies has only added to its spiraling dive into the depths of no return. A new age of artist are emerging that change the destructive direction that was once in place. Visionaries who understand the true art of music and its power to heal and uplift all humanity. Never again will he who pays the piper shall call the tune. TruthTraveler Report As Abusive Jun 21, 2010 11:45am EDT How can rap cr@p save the music business? It isn’t even music. Tron400 Report As Abusive See All Comments (5) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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