Well, now it's 2008 and iTunes is the No. 1 music retailer in the United States. Apple is beating out not just online retailers but the big brick and mortar retailers such as Wal-mart and Best Buy Company as well, to say nothing about smaller, independent stores. The iTunes music collection contains more than 6 million songs, and according to Apple, its 50 million customers purchased more than 4 billion songs since it launched iTunes in 2003.
Digital downloads, along with burning and file swapping, is crushing CD sales. Which may explain why Jay-Z is leaving Def Jam Records for Live Nation, a concert promoter that's recently signed Madonna and U2. Artists may be realizing that their future revenue will come from performing and merchandising rather than CD sales.
"CD sales are in free fall, and the recording industry's revenues have shrunk from $15 billion to $10 billion in less than a decade," reads an article in the online magazine Slate last month.
For Benbrook and the remaining Capitol Hill records stores this means CD sales are way down. All of the record stores are hurting said Benbrook. He overhears customers in his store often say to one another: "Don't buy that. I have it at home - you can burn it."
What are record stores doing about it? They're going to sell more vinyl records and, if they're savvy, they'll sell them online.
"Vinyl will never go away," said Benbrook. His plan is simple: have the "world's best vinyl collection."
Perhaps Benbrook is right because sales of vinyl recordings appear to be booming.
Broadway's Everyday Music is now selling about $10,000 a month in vinyl, according to manager David Miranda. He said he's been trying to offset his loss in CD sales by bringing in more vinyl. While it hasn't completely made up for demand for CDs, Miranda said vinyl is helping.
Gruv on Broadway has recently begun offering new vinyl from independent record labels. Sotre manager Jason Jrimes said it gives the customer something tangible. In addition to large and often detailed artwork, the record labels are offering digital downloads so you can put the album on your iPod.
"It's been going great," said Jrimes. Sales of vinyl, he said, have been doubling every couple of weeks.
Gruv's selection of vinyl is still pretty small, but Benbrook's collection is extensive and he's selling a lot of it online. Anywhere from 50 to 70 percent of his gross sales are online. As for his store on East Pike Street, "I look at it as my office. It's a place to process orders and keep my inventory." If someone buys a record, it's a bonus.
While vinyl sales may be going well, it's difficult to imagine enough people dusting off their turntables to replace the loss in CD sales, particularly for large stores like Everyday Music, but the owners aren't ready to give up. With Sound Transit taking over the building Everyday has called home, the store will relocate several blocks south on Broadway. Previously, it was uncertain Everyday would be able to remain on the Hill.
When ask ed if he sees record stores on Capitol Hill in the future, Miranda said, "I do see them in the future. I don't think the community wants to see them go. Record stores are valuable to the community."
Benbrook agrees: "We're providing a community service."
He concedes that he could feasibly close his store and make more money by going strictly online.
"It wouldn't be as much fun," he said. "I like owning a record store. Plus our location is great."
It's that sense of community and passion for music that keeps these stores going.
"Honestly, there's no profit in records," said Kippy, who manages at Platinum Records at 925 E. Pike St. "We're working here because we love it. It's for the love of the vinyl."
Keith Vance is a student in the University of Washington Department of Communication News Laboratory. Reach him at editor@capitolhilltimes.com.
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