Who buys CDs anymore? Electronics retailer Best Buy is betting: very few people.
The nation’s largest consumer electronics retailer will no longer be selling CDs.
According to Billboard, Best Buy told suppliers that it will pull CDs on July 1.
"At one point, Best Buy was the most powerful music merchandiser in the U.S., but nowadays it's a shadow of its former self, with a reduced and shoddy offering of CDs," Billboard reported. "Sources suggest that the company's CD business is nowadays only generating about $40 million annually."
People are still listening to music, but with digital subscriptions like Spotify, Pandora and Apple Music on top of digital sales, the internet is the way of the future.
According to the International Federation of Phonographic Industry, streaming revenues have surged by more than 60% and more than 100 million users have paid streaming subscriptions globally.
In 2016, only 34 % of the recording industry’s global revenues came from physical format sales. Half of the revenue came from digital sales.
On Friday, Best Buy announced that it would pay one-time bonuses of $1,000 to full-time workers and $500 to part-time employees.
The company said the bonuses were due to the federal tax overhaul.
"It's an end of an era. You know, a lot of us have seen this coming for a long time," said Dale Kurschner, the Editor in Chief of Twin Cities Business.
So, without CDs on their shelves, what will Best Buy do with all of that valuable space in its stores?
"We're still kind of hoping that Best Buy comes up with its own unique retail strategy once again, rather than bringing in other brands and doing these little stores within a store, what can Best Buy come up with," said Kurschner.
There's also a rumor that Target may be re-working its CD sales. They told us in a statement: "Entertainment has been and continues to be an important part of Target's brand. We are committed to working closely with our partners to bring the latest movies and music titles, along with exclusive content, to our guests. The changes we're evaluating to our operating model, which shows a continued investment in our Entertainment business, reflect a broader shift in the industry and consumer behavior."