SIX MONTH SCORECARD

While it may sometimes seem like the record business is running on fumes, the year’s six-month marketshare report shows, at least digitally speaking, there may be a light at the end of the tunnel.

Warner Bros. Records is the marketshare leader in new releases (6.3%), though it’s down .5% from same time last year. IDJ is just a split hair behind the Burbank Bunny at 6.3%.

UMGD was once again the top distributor for total album sales (31.7%), though they were down .3% from last year’s midyear totals. WMG was the only music group to show growth for total marketshare, at 19.2%, up 2.6% from midyear 2005.

Surging Disney/Hollywood showed the biggest overall growth year to year with a 2.4% rise, boasting the two top-selling albums of the half-year in High School Musical (2.6m) and Lyric Street’s Rascal Flatts (2m). Atlantic, at 2.3%, is right behind the Mouse house, thanks to #3 James Blunt via a deal with Custard (1.7m) and #7 T.I. on Grand Hustle (1.3m).

While total album sales are down approximately 4% January-June, the total is slightly up if digital downloads are figured in as 10 equaling one album. Overall music sales, including albums, singles, music video and digital tracks, were up 24%.

Elsewhere, only the digital realm offered good news, as digital-track sales increased by almost 80% over last year, while average weekly track sales were up to 11 million, from 7 million in 2005. Digital album sales are up more than 125% to 15 million compared to the first six months of last year. Overall music purchases in 2006 are expected to break 1 billion in sales for the second consecutive year.

Here are some other interesting factoids:

• Mass merchant marketshare is up to 40%, with nontraditional sales outlets accounting for more than 10% of total album sales, both all-time highs.

• Five genres have experienced sales increases over last year: soundtracks and Christian/gospel were up double-digits, while classical, Latin and metal were also up. Experiencing double digit declines were R&B, rap and alternative, with jazz just behind them.

• If EMI and WMG had joined forces at the beginning of ’06, the combined company would be a solid #2 at 29.3%, three points above Sony BMG and 2.4% below UMG.

• Other best-sellers include Geffen’s Mary J. Blige (#4, 1.5m), Arista’s Carrie Underwood (#5, 1.5m), UTV’s Now 21 (#6, 1.4m), Columbia’s Dixie Chicks (#8, 1.3m), Decca’s Andrea Bocelli (#9, 1.1m) and IDJ’s Nickelback (#10, 1.1m)

BIG FOUR (total marketshare)

Music Group 2006 2005 +/-UMGD 31.7% 32.0% -.3%
SONY BMG 26.3% 27.8% -1.5%
WMG 19.2% 16.6% +2.6%
EMM 10.1% 10.3% -.2%

MAJOR LABELS (new releases)

Y-T-D ’06 Y-T-D ’05 +/-
Warner Bros. 6.3% 5.8% +.5
Island Def Jam 6.2% 6.2% --
Atlantic 6.0% 3.7% +2.3
Columbia 5.5% 5.9% -.4
Interscope A&M 5.4% 10.1% -4.7
Disney/Hollywood 5.1% 2.7% +2.4
RCA Music Group 5.0% 5.0% --
Universal 4.9% 5.1% -.2
Geffen 3.3% 2.8% +.5
ZLG 3.0% 2.6% +.4
Epic 2.9% 5.1% -2.2
RCA Nashville 2.5% 2.5% --
Virgin 2.0% .3% +.7
Capitol 1.9% 3.1% -1.2