SoundScan and the consolidation of control in the popular music industry

Abstract

SoundScan is an information technology that compiles point of purchase sales data for use in constructing recording popularity charts and other marketing purposes. Although it represents the first significant procedural change in compiling Billboard charts in decades, many of SoundScan's effects have not been assessed. SoundScan shifts chart emphasis from `leading' outlets to mass-market stores, and increases the marketing efficiency of companies that can afford its price. This in turn may strengthen market barriers for smaller companies and ultimately decrease the number of new releases in the market. This article reviews the history of record charts and the SoundScan innovation, discusses industrial reactions to SoundScan and examines the implications of its use.