Growing up, music wasn’t just something playing in the background; it was something we could hold. My dad spent his free time DJing at home, surrounded by vinyl records, cassette tapes, and CDs. Those formats weren’t just tools; they were part of how we experienced music.
Today, that experience has fundamentally changed. DJs who once spun records have largely been replaced by laptops, controllers, and streaming libraries. Digitalization has made physical music optional, if not obsolete, for many listeners.
Entire catalogs now fit onto a USB drive or exist in the cloud, offering a level of convenience that physical formats simply can’t match.
But that convenience has come with a trade-off: the gradual disappearance of a once-thriving retail culture built around tangible music.
A shrinking space for physical music formats
Even with a loyal base of collectors and enthusiasts, the market for physical music has steadily declined. Independent record stores and legacy retailers alike have struggled to adapt to shifting consumer behavior.
At the same time, the broader music industry is growing. According to The Recording Industry Association of America (RIAA), the U.S. music revenue reached $11.5 billion in 2025, continuing a steady upward trend.
However, only 12% of that revenue came from physical formats, while 82% came from streaming. Paid subscriptions alone accounted for $5.9 billion.
In other words, people are consuming more music than ever, but they’re no longer buying it in physical form.
Soundwaves closes its final location
A long-standing Houston retailer has now joined the list of closures.
Soundwaves, located at 3509 Montrose Blvd., is in the process of closing after five decades in business. Liquidation sales began on April 25, with all items discounted by 50% until closing, according to a post on its Instagram.
By April 30, the store was listed as “permanently closed” on Google Maps, and its official website was no longer accessible, though liquidation sales are still ongoing, and its Instagram account remains active.
Originally founded in 1976 near the Astrodome, the business expanded to multiple locations across Houston over the years, including Westbury and near Hobby Airport, both of which have since closed.
Soundwaves became more than just a retail space; it was a cultural fixture.
Known for its deep selection of hip-hop records and rare finds, it also catered to surf and skate culture with boards, gear, and apparel. Its locally produced commercials became instantly recognizable, cementing its place in the city’s identity.
Its closure will mark the end of an era for Houston’s music scene.
The rise of streaming and its trade-offs
The dominance of streaming platforms has fundamentally reshaped music consumption. Since launching in 2008, Spotify (SPOT) has grown into the world’s most popular audio streaming service, with over 761 million monthly active users and 293 million Premium Subscribers, according to the company’s first-quarter 2026 earnings report.
Streaming offers instant access to vast libraries, but that access is not permanent. Licensing agreements change, catalogs shift, and content can disappear without notice.
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As longtime entertainment writer Jim Beckerman noted in NorthJersey.com, digital media can be surprisingly fragile. Songs and albums available today may not be there tomorrow.
“Licensing disputes, copyright issues, mega-mergers that were barely on your radar, can mean that the album you were counting on to cheer you up, or the series you were looking forward to rewatching, is suddenly not there,” Beckerman added.
By contrast, physical formats offer permanence, something streaming cannot. Once owned, they can’t be removed or altered.
Patterns seen beyond music
The music industry’s transformation mirrors shifts seen in other sectors. The book industry, for example, faced similar disruption with the rise of digital reading devices in the late 2000s.
Yet physical books have proven resilient. Barnes & Noble, after years of closures, is now expanding, opening dozens of new locations and investing in in-person retail.
The company opened 67 stores in 2025, more than it did from 2009 to 2019 combined, and plans to add over 60 new locations in 2026. As of February 2026, Barnes & Noble operates around 700 bookstores nationwide, according to a company announcement.
Print books continue to out-sell eBooks 4 to 1, according to Tonerbuzz, showing that physical formats can coexist with digital alternatives when positioned effectively.
This trend suggests that decline doesn’t necessarily mean extinction; it signals a need to evolve.
Physical retail under pressure but not disappearing
The closure of long-standing stores reflects broader trends across retail. In 2025, store shutdowns increased 67% compared to the previous year, according to CoreSight Research, driven by economic pressures and shifting consumer habits.
Meanwhile, e-commerce continues to grow rapidly. U.S. online spending reached $1.34 trillion in 2024 and is projected to surpass $2.5 trillion in 2030, according to Capital One Shopping data.
Still, physical retail remains dominant. Brick-and-mortar stores accounted for approximately $14.4 trillion of the $18.9 trillion in total retail sales in 2025, significantly outpacing e-commerce, according to Euromonitor research gathered by EY.
“It’s clear that the physical store still plays an important role,” said EY Retail Analysts Malin Andrée and Jon Copestake. “Not only do stores have plenty of runway left in delivering revenue, but they also have opportunities to drive new growth and alternative revenue streams.”
Brick-and-mortar isn’t disappearing; it’s evolving. Success increasingly depends on offering more than just products. Experience, community, and specialization now define what draws customers in.
What it means for physical music
For music retailers, the path forward remains uncertain. Competing with instant, unlimited access is a significant challenge.
But demand for physical formats hasn’t disappeared entirely; it has simply become more niche. Collectors, audiophiles, and longtime fans still value ownership, sound quality, and the tactile connection that digital platforms can’t replicate.
The question isn’t whether the industry can return to what it once was. It’s whether it can redefine itself for the future and find new ways to remain relevant in a world where access is instant, but ownership is no longer guaranteed.
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