Nielsen SoundScan
Overview
Nielsen SoundScan is an information system that tracks sales of music and music video products throughout the United States and Canada. The system is operated by Nielsen Holdings, a global information and measurement company. Nielsen SoundScan is the sales source for the Billboard music charts, making it an integral part of the music industry.
History
Nielsen SoundScan was established in 1991 by Mike Shalett and Mike Fine with the goal of accurately measuring sales of music. Prior to the creation of Nielsen SoundScan, the music industry relied on manual sales reports from retailers, which were often inaccurate and easily manipulated. The introduction of Nielsen SoundScan revolutionized the industry by providing accurate and reliable sales data.
How Nielsen SoundScan Works
Nielsen SoundScan collects data from more than 14,000 retail, mass merchant, and non-traditional outlets (including online stores, venues, and digital music services). The system uses a combination of UPC barcodes and ISRC codes to track sales. When a product is sold and scanned at a point-of-sale, the sale data is collected by Nielsen SoundScan. Every week, the data is compiled and used to generate various music charts, including the Billboard charts.
Impact on the Music Industry
The introduction of Nielsen SoundScan had a significant impact on the music industry. For the first time, the industry had access to accurate and reliable sales data. This led to a shift in the way music success was measured and how charts were compiled. The Billboard charts, for example, became more reflective of what consumers were actually buying. The system also helped expose popular music that was previously underrepresented on the charts.
Criticisms and Controversies
Despite its significant contributions, Nielsen SoundScan has faced several criticisms and controversies. Critics argue that the system favors major labels and mainstream music, as independent artists and niche genres often have less distribution and therefore fewer sales to report. There have also been instances of labels and artists manipulating the system to inflate sales numbers. Despite these criticisms, Nielsen SoundScan remains a vital tool for the music industry.
Future of Nielsen SoundScan
With the rise of digital music and streaming services, the role of Nielsen SoundScan is evolving. The system now tracks digital sales and streams in addition to physical sales. As the music industry continues to change, Nielsen SoundScan will likely continue to adapt and innovate to meet the industry's needs.