Warner’s distribution arm closes some smaller accounts

Warner distribution division has shut down several accounts for small retailers of physical music. According to Pitchfork, WEA is enforcing a policy that requires a minimum annual order of $10,000 for stores with direct accounts. As a result, the accounts for about a hundred retailers that did less than $10,000 in business with the label last year have reportedly been closed.

Even though vinyl purchases have been on the rise in most markets, including with coveted teen and millennial buyers, the share held by records is still tiny in comparison with that held by streaming. Listeners are becoming more likely to seek music access than music ownership. That trend is visible in the rapid growth of streaming in analyses released by both Nielsen and the RIAA, as well as in the continued strong reach of terrestrial radio. Most channels for direct purchases of music, be in CDs or digital downloads, have been posting declining revenue.