11/26/08 Atlantics Digital Sales Surpass Physical Sales

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Atlantic Records has become the first major record lable to have it's digital sales bring in more revenue than it's physical cd sales. Home to artists like T.I., Diddy, Missy Elliot and Missy Elliot, Atlantic is claiming that over 50% of their music profits come from iTunes downloads, ringtones and other digital media. "It used to be that you could connect five dots and sell a million records. Now there are 20 dots you can connect to sell a million records" Atlantic's President Juilie Greenwald said.

Much of Atlantic's success comes from record breaking ring tone sales like Flo Rida's "Get Low" and Lupe Fiasco's "Superstar." Although this might seem to be good news to you, labels aren't so sure "It's not at all clear that digital economics can make up for the drop in physical," former EMI executive John Rose told Times. "The real question is how does the record industry change its rights structure so it captures a fairer percent of the value it creates in funding, marketing and managing the launch the artists."

Source: http://www.rapbasement.com/rap/112608-a ... s-cds.html