Understanding: Billboard BB200 vs US Album Sales

RIAA

I) Establishing Key Formulas

C) Considering RIAA specificities

Until 1975, RIAA album certifications were awarded for a gross of $1 million. There was no units plateau needed. During the first years of the 70s, the list price, e.g. the price to consumers, was on average $4,45 per LP and $5,30 per cassette album.

The million dollar gross awarded wasn’t based on the price to consumers though, but instead on the wholesale price which was paid by distributors to the manufacturer. There are many articles from that period showing this dealer price was about half of the list price, such as this one or this one.

By 1973 when the first set of data came in from the RIAA, the average price of albums was $4,69. Using 50% of that price, it means it was needed to sell more than 426,283 albums to gross $1 million. Choosing data from various Billboard articles from 1962 to 1975, we were able to build the following table to include the average wholesale price per year up to the introduction of the units criteria by the RIAA.

14 thoughts on “Understanding: Billboard BB200 vs US Album Sales”

    1. Hi Gus!

      Obviously you are correct, I always think about Kenny G when talking about Michael Bolton and vice versa, don’t ask me why! Now fixed 😉

  1. Hello dear MJD it’s really a very interesting article on RIAA certifications.
    From this article it is evident that some artists such as U2 or Michael Jackson were massively inflated.
    This fact will affect on global sales ? For example the U2 in last year’s article have sold about 192.400.000 equivalent album sales with 12x platinum for The Joshua Tree, 8x platinum for Achtung Baby, 5x platinum for Rattle and Hum and War etc..
    Based on this new article for example their US album sales and their world album sales will be lower ?

    1. Hi Anthony,

      No, it doesn’t impact RIAA certifications. Their awards were achieved thanks to catalog sales and CSPC articles took that into consideration already!

  2. Great job man! Are we getting the 2nd part of your Understanding article about download sales vs. streaming? This is the one I’m most excited about, haha.

  3. Hey MJD,
    You’ve done a lot of work on 90’s and 2000’s artists and I think you should consider looking at Ashanti’s discography. She came out with a strong debut and had hit songs in her time

    1. Hi Luca!

      The factor can be easily calculated for post-1990 years using US Sales Database. I avoided it on purpose for two reasons:
      – Soundscan reflects better ups and downs, runs are much less linear, which corrupts the grouping of positions logic. In the past, a standard run was 152-81-55-38-33-32-33-39-60-121-155-187-out. Now you can have 10-39-101-199-out, which would give a much better result than 11-41-101-out.
      – Internet/pre-orders: they massively frontloaded sales which means now a #1 can sell 30k or 1m. This completely corrupts every possible calculation!

  4. Hi MJD!

    Forgive me for being quite ignorant, but I’ve re-read your article a thousand times, and I still don’t know how you input the Xmas factor in your calculations. I know how to calculate without the Xmas factor, but how do you add in the Xmas factor? Does it depends on which positions it charted during December?

  5. Hi MJD!

    Forgive me for being ignorant, but I still don’t know how you add in the Xmas factor in your calculations. Could you elaborate on how to do that?

    1. Hi Raffi!

      You are two that did this comment (with someone at SHF) so I suppose this part is unclear, I’ll amend the text! In the meantime, here is the answer I made to the other comment:
      The Xmas factor ais roughly the same scale as the chart overall, just slightly lower. Here is the weight you should give to an album depending on its average ranking in December:
      At #1 = weight 15 to 20 (depending on how big it was / how long it remained at 1)
      Charting 2-5 = weight 12
      Charting 6-10 = weight 8
      Charting 11-20 = weight 6
      Charting 21-40 = weight 4
      Charting 41-100 =weight 2
      Charting 101-200 = weight 1

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