Best Buy will end sales of CDs by July, report says
Best Buy points to declining sales, while Target will only sell the discs on consignment.
- Ty was nominated for Best New Journalist at the Australian IT Journalism awards, but he has only ever won one thing. As a youth, he was awarded a free session for the photography studio at a local supermarket.
Pour one out for the shiny CD, music fans.
Best Buy has told music suppliers it will pull compact discs from its stores starting July 1, according to Billboard. Declining sales were cited as the reason.
Meanwhile, Target is said to have demanded that it sells CDs on consignment. That means it will pay music labels only for goods sold within 60 days, and ship back unsold discs.
Best Buy made $40 million on CDs last year. In comparison, despite being the largest streaming provider, with 70 million paid subscribers, Spotify was expected to lose between $118.4 million and $236.8 million last year.
Best Buy will continue to sell vinyl records as part of a prior commitment, Billboard reports.
Representatives for Best Buy did not respond immediately to CNET's request for comment.
A Target spokesperson said, "The changes we're evaluating to our operating model, which shows a continued investment in our Entertainment business, reflect a broader shift in the industry and consumer behavior."
