High price of CDs saves music market from slide

THE NUMBER of recorded music albums sold fell in 1991 for the first time in seven years in Western Europe, the US and Japan, which represent 75 per cent of world music sales. But the high price of compact discs increased the market's value by 5 per cent to dollars 20bn (pounds 10.6bn), according to BIS, the industry analyst.

Although the overall market slipped by 1 per cent in volume terms, sales of compact discs, which represent 55 per cent of the market in the countries surveyed, increased by 22 per cent. Vinyl albums have disappeared from many stores and the share of compact discs is likely to be 80 per cent by 1995, the BIS report said.

The value of the compact disc market in Western Europe, the US and Japan is expected to rise to dollars 18.64bn by 1995, compared with dollars 2.6bn for cassettes and dollars 171m for vinyl albums.

According to the British Phonographic Industry, UK sales of compact discs were 64.2 million in the 12 months to March, overtaking cassette sales of 63.8 million. Vinyl LP sales were 11.1 million.

Analysts at BIS said that the industry is already anxious to find a new medium to further boost sales. Hopes are pinned on Philips' Digital Compact Cassette and Sony's Mini Disc, due for launch before Christmas.

The soaring popularity of compact discs comes despite increasing concern over their relatively high price. Sir Bryan Carsberg, the Director-General of Fair Trading, is examining the industry, only months after his predecessor, Sir Gordon Borrie, gave it a clean bill of health.

Although the cost of manufacturing a compact disc is pounds 1, in Britain they can cost pounds 12.99 or more.

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