A look at the top 10 albums in America reveals sales are down. Way down. The past year has been a rough one for record labels in America, as albums are not selling well in the states. The top 10 for the past month (even year) show albums barely reaching gold during their shelf life, as the current projects by each artist are selling on average 200,000-300,000 copies.
Considering how expensive albums are to record, with some producers charging between $50,000 to $250,000 per song (or beat) in addition to music videos, buying airplay, marketing and advertising costs reaching into the millions, labels are hemorrhaging money on projects with low financial yield.
Singles are selling okay, but when you think about the fact artists get a few cents for each one sold, then 20-30 cents per unit goes to retailers and the rest the label and associates, that’s not much money. A time is coming when there will be mergers of well known labels to try to stay in business in the face of what has happened.