‘93 Sales Break Sound Barrier : Pop music: Album and video sales hit a record $10 billion, but some say that may be inflated because statistics measure products shipped--not actually sold to customers.

Annual record and music video sales broke the $10-billion barrier for the first time ever in 1993, the Recording Assn. of America announced Thursday.

“We finally reached the milestone,” said Jay Berman, chief executive officer of the Recording Industry Assn. of America, the Washington-based trade group that represents all the major record companies.

“The thing that made 1993 such an amazing year was the diverse cross section of strong albums the industry released. We aren’t just relying on a few superstars anymore. We’ve got a bunch of new artists out there now selling millions of albums. That’s a really healthy sign for the future.”

The new record--which had been expected, following the year-end sales surge--represented a sales gain for record companies of 11.3% over association-reported sales in 1992. Overall unit shipments increased almost 7%.

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The dramatic dollar volume increase in 1993 can be attributed primarily to a 22% leap in compact disc sales, which are priced significantly higher than cassettes. According to the association, consumers spent $6.5 billion for 495.4 million CDs in 1993.

Cassette sales continued to take a back seat to CDs in 1993, accounting for about $2.9 billion in revenue. Music video sales grossed an estimated $213 million while single recordings in CD, cassette and vinyl formats generated more than $400 million, according to the association. All figures are calculated at suggested list price.

The trade group’s sales statistics are based on company shipments of 955.6 million compact discs, cassettes, vinyl recordings and music videos--up from 895.5 million units in 1992. The statistics measure products shipped to stores--not actually sold to customers--including items shipped directly through record clubs and mail-order catalogues.

Some record store owners, however, question whether the $10-billion figure was accurate.

“While the industry is expanding and I think just about all record retailers had a good year in 1993, I would guess that the total (dollar) number would be less if it was based on the actual price that records are sold for in stores,” said Lew Garrett, vice president of purchasing at the Canton, Ohio-based 396-outlet Camelot Enterprises Inc.

Because American consumers are reluctant to pay full price for compact discs, merchants said they often discount CDs significantly--sometimes as low as $5 off the $16.98 or $17.98 suggested retail price tag. Record companies charge merchants about $10.70 for top-of-the-line CDs, which cost less than $6 to make and distribute, sources said.

Retailers also suggested that the association may have overestimated revenues generated from product shipped to an increasing number of discount houses such as Target and Circuit City, some of which sell Top 40 compact discs below cost at $10.

The biggest complaint voiced by merchants, however, focused on the surge in record club and mail-order sales--accounting for more than $1.5 billion in 1993 from which they reaped no income. Lawyers who represent recording artists have also privately voiced concern over the rise in record club sales because artists and composers lose a significant portion of their earnings on such transactions.