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Nielsen SoundScan is an information system created by Mike Fine and Mike Shalett that tracks sales data for singles, albums, and music video products in Canada and the United States for Billboard and other music industry companies. MTV, VH1, and many other north American cable music channels use Nielsen SoundScan data as well.
Nielsen SoundScan began tracking sales data for Billboard on March 1, 1991. Previously, the Recording Industry Association of America tracked sales by calling stores across the U.S. and asking about sales.
How Nielsen SoundScan tracks sales
Sales data from cash registers is collected from 14,000 retail, mass merchant, and non-retail (online stores) outlets in Canada and the U.S.
A barcode is on the back of every CD or cassette. When the Canadian/U.S. customer is about to buy an album or single, the store clerk runs the barcode across a scanner. The sale is put into the store's computer and the sale data is also sent to Nielsen Media Research offices for the region.
Nielsen SoundScan clients include:
- All major and most independent labels
- Distribution companies
- Artist managers, booking agents
- Concert promoters, venue owners
- Online retailers and "digital delivery" companies
Single sales in perspective
American single sales have suffered since Billboard started allowing album cuts on its Hot 100 chart. Nowadays, a single has to sell around 140,000 copies to reach no 1 on the Hot 100; however, sales amounts for singles are rarely given by Billboard. The songs that rank highest on the Hot 100 are those that have high radio airplay impressions.
In 2005, single sales have fared better than they have in years since Billboard started tracking digital downloads from online music stores such as iTunes, Rhapsody, and Musicmatch. Sales of digital downloads have increased more than 200% from last year; however, sales of CD singles are down about 60% from last year.
2005 album sales
American album sales in 2005 fell 7.8% from their 2004 peak. 618.9 million albums were sold, as opposed to 666.7 million in 2004. However, digital track downloads climbed 150% from 2004, and digital album downloads rose almost 200%. Also, the total number of music purchases went up 22.7%, breaking one billion for the first time.*
See also
External links
References
- "Album sales slump as downloads rise" by Ken Barnes, "USA Today", January 4, 2006, retrieved April 16, 2006
"Nielsen SoundScan"