US Software Sales Up At Retail, Reports MI SalesTrak™

Sales of musical software are heading up again, following a disappointing year in 2007.  MI SalesTrak, the retail tracking service for musical instrument products, reported a 17% increase in retail dollars spent on software in the first four months of 2008, following an 11% decline for the year before.  Sales of audio and MIDI interfaces also grew briskly in early 2008.
MI SalesTrak, an IMSTA associate member, compiles sales information from US retailers on a monthly basis, and includes virtually all major musical instrument retailers in its panel.  Product sales by manufacturers directly to consumers are not included in the statistics.
“The increases we are seeing are the result of a modest increase in unit sales volume, coupled with a dramatic increase in average prices,” said Clark Johnson, CEO of MI SalesTrak.  Sample libraries saw the largest retail price increases, followed by Effects Plug-ins and Editing/Mastering software.  The average price of a software package so far in 2008 was $238, up from last year’s average of $206.   
“Software tools for recording and music making are improving all the time, and it seems as if the consumer is recognizing the value that can come from even the higher-priced packages,” observed Johnson.  “It’s too early to say, but maybe IMSTA’s message is getting through.”
The year 2007 was not as positive for the software industry.  The retail sales of musical software declined in 2007, dragging down results for the computer recording industry in general.  MI SalesTrak reported an 11% drop in retail dollars in 2007, following a heady 19% growth the year before.  Sales of audio and MIDI interfaces stayed relatively flat in 2007, but total sales for the industry fell 3%, to $151 million.  
MI SalesTrak also compiles information on software and hardware for DJ applications, but does not yet have enough history to analyze trends in these markets.

Three Year Sales Trend for Software & Interfaces

		2005		2006		2007
Interfaces					change		change
Dollars		$92,071,395		$98,332,473	6.8%	$99,967,847	1.7%
Units		319,824		354,136	10.7%	358,848	1.3%
Avg. Price		$288		$278	-3.5%	$279	0.3%
Software
Dollars		$48,429,586		$57,847,899	19.4%	$51,492,378	-11.0%
Units		247,806		280,251	13.1%	249,848	-10.8%
Avg. Price		$195		$206	5.6%	$206	-0.2%
Grand Total
Dollars		$140,500,980		$156,180,371	11.2%	$151,460,225	-3.0%
Units		567,630		634,387	11.8%	608,696	-4.0%
Avg. Price		$248		$246	-0.5%	$249	1.1%

MI SalesTrak is an independent market research service of Marketing Information Services, Inc.  For more information, contact:

Clark Johnson
631-26-8231
clark@misalestrak.com
www.misalestrak.com

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