The '90s was an interesting era for music lovers. MTV helped return the hit single to prominence, however, people acquired new music mostly by buying CDs. Which usually meant paying for and getting the whole album. So if you heard a piece by an unknown band and wanted to own their songs, you were getting yourself into a bit of a gamble.
However, during the '90s, the CD reigned supreme. It became the biggest money-spinner the music industry had ever seen. “In the mid-90s, retailers and labels felt indestructible,” said Rob Campkin, who worked for HMV between 1988 and 2004. "It felt like this was going to last forever."
As the economy kept growing, annual global sales surpassed 1bn in 1992 and 2bn in 1996. The profit margins were incredible, too. The CD not only cost less to manufacture than vinyl, it was also cheaper to transport and stack in stores, while selling for up to twice as much. The prices kept growing even when the costs started shrinking. “It was simple profiteering,” said Stephen Witt, whose new book How Music Got Free chronicles the industry's vexed relationship with the MP3. “[Labels] would cut backroom deals with retailers not to let the price drop. The average price was $14 and the cost had gotten down almost to a dollar, so the rest was pure profit.”