Fact of the Week: Independent Music Labels Accounted for 35 Percent of Top-Selling Albums in 2010, Up From 12 Percent in 2000

The rise of the Internet has provided people new and alternative ways to purchase and consume entertainment. In particular, expanded broadband coverage has enabled rapidly growing audio and video streaming platforms such as Spotify, Apple Music, Netflix, and Hulu to serve as alternatives to brick-and-motor record stores or video rental stores.

The rise of these digital platforms has also reduced needed economies of scale, giving smaller independent music labels greater ability to reach consumers. As a result, independent music labels accounted for 35 percent of top-selling albums in 2010, up from 12 percent in 2000.