Over the past year, the music industry has struggled to get CDs and vinyl to record stores across the country. An inside look at the ongoing crisis:
Another record store owner, Terry Currier of Music Millennium in Portland, Oregon, placed an order last year with Universal Music Group: approximately 700 items to ship on October 1st, giving them plenty of time to make it to the store before holiday shopping began. None of the albums showed up until after the Christmas rush.
For many casual listeners, the convenience and rapid growth of streaming services has turned the physical side of the music business into an afterthought. But despite declining physical sales overall, CDs and vinyl still generated revenues of nearly a billion dollars in this country in 2019, according to Richard Burgess, CEO of the American Association of Independent Music .
“Direct Shot is obviously not prepared to handle the volume they took on,” says Andrea Paschal, executive director of the Coalition of Independent Music Stores. “It’s a one-inch pipe with 10 inches of water going through it,” adds Allen Kovac, CEO and founder of the independent label Better Noise Music, which left the Warner-owned Alternative Distribution Alliance a couple of years ago.
Retailers say Universal temporarily moved some distribution to a separate facility to reduce the Direct Shot logjam. More recently, the three major labels stopped shipping music to small stores as a way of lightening Direct Shot’s load, according to retailers. Stores were asked to rely instead on one-stops, basically middleman distributors, but that led to price increases.
An executive at an indie that goes through ADA says the chaos at Direct Shot has “cost us severe loss of business for almost nine months.” “We started to reschedule releases in the hopes that they would benefit if the situation got better,” he adds. Andy Farrow, who manages the metal band Opeth, says the delays in physical shipping also “impacted our chart position.”
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