By way of a brief recap from parts one and two of our year-end sales trilogy, (click for part 1, part 2) readers will recall that country album sales, including physical and digital album downloads, ended 2011 with sales of 42.923 million units, about 1.8% behind last year’s efforts.

In this final installment we present a comprehensive breakdown of how country sales played out by distribution group, by individual imprints and the top ten selling digital track artists. Capitol Nashville and RCA Nashville led the charge with market shares of 13.34% and 12.78% respectively. In third place was MCA Nashville with a 6.27% share. The 2010 shares are also listed to give perspective. Many of the shifts, both up and down are a reflection of release schedules. For example Big Machine had 11.63% share in 2010, boosted largely by the release of Speak Now from its flagship artist Taylor Swift which debuted with over one million units its first week. Sony Music Entertainment lead the country distribution groups with 33.18% marketshare. Universal followed closely with 31.52%. If the UMGD/EMM merger had already taken place, the newly formed entity would account for about 46% marketshare, a large majority destined to reshape elements of the country landscape.

Hidden in the numbers is the realization that increased catalog sales were responsible for propping up the overall sales numbers. Soundscan tells us that on average across all genres, current sales dropped 4.2% while catalog and deep catalog units were up 8.9% and 12.5% respectively. Unfortunately, we don’t know the exact breakout for country music. However, a brief look at country’s final sales week of 2011 supports catalog also played a leading role.

For example, comparing the final week of 2011 with the final week of 2010 we find an increase of 99,000 units in 2011. When comparing sales from the current Top 75 charts and Top 50 Catalog charts the differences do not account for the extra 99k. Therefore, it seems logical that those units are increasingly coming from the long tail/deep catalog area. Why are we concerned with making this distinction? Because much of that older catalog has been moved into the $5 retailer bins. Short story (and bad news) is that although unit sales are down only 1.8% it is highly likely that revenues and profits are down significantly more than 1.8% because a higher percentage of the sold units were sold at the lower catalog prices.

Based exclusively upon the Digital Genre Country Top 200 Year End 2011 chart, the Top Ten selling digital track artists lined up on a steep slope. Jason Aldean easily took first place this year with Taylor Swift, Zac Brown Band, Lady Antebellum and Blake Shelton filling out the Top 5.

As we look toward 2012, the issues we have been examining over the past year will continue to present unique challenges for country label sales and marketing divisions. The transition from physical to digital will accelerate, but let’s not lose sight of the fact that in 2011 physical albums accounted for about 81% of the country business. As shelf space continues to erode at the mass merchandisers, no doubt downward pressure on pricing will continue. Track Equivalent Albums are also likely to take a more important seat at the sales discussion table in the coming year.

One beautiful fact never changes, great music rises to the top… So here’s to a great 2012….and the great music it will produce!

Artist Growth, a Nashville based company offering a sophisticated set of cloud-based business management tools for artists, officially launches today. Musicians Matt Urmy and Jonathan Sexton created the app that works on any mobile device to integrate finances, calendars, inventory, contacts, social media and mentoring resources from industry experts.

Joe Galante and Dr. Harry Jacobson, investors in Artist Growth, marked its debut with a party last night at the Country Music Hall of Fame and Museum. Mayor Karl Dean was scheduled to give a keynote address, while Vince Gill and Cowboy Jack Clement were set to make special appearances. Galante calls the system, “the record business in a box.”

Artist Growth reps will showcase the product later this week at the NAMM Show in Anahaim, followed by MIDEM in Cannes, France; Folk Alliance convention in Memphis, and South by Southwest in Austin.

As previously reported, other investors include echomusic founder Mark Montgomery and Moontoast founder Joe Glaser.

Urmy told Venture Nashville that the company has already raised $1 million in outside capital, and that the influx is continuing in 2012. According to the report it is also likely that the technology can be applied to areas other than music, including healthcare and education.

“It empowers artists to participate in the business side of music without being too distracted from their creativity,” explains Urmy, who conceived the idea in 2009 with Sexton. They began developing the application 18 months ago.

A low price point makes the app even more attractive. The monthly starter rate is $4.95, and a 30-day trial is being offered for 99 cents. The app is available in the Android Market, and Apple’s App Store.

Here’s a breakdown of what Artist Growth offers:

1. Combines every aspect of business in one place, helping artists understand what their career means to a label, manager, bandmate, or investor.

2. Cloud-based technology. Access Artist Growth and all resources via any web-based or mobile platform, with wireless syncing across multiple devices and users.

3. Simplified, customized daily tasks. Artist Growth’s Action Packs package to-do lists curated by industry professionals, using push notifications to organize everything from promoting a show to writing a business plan.

4. In-app financial management. Snap photos of receipts on the road, input directly to tax filing systems, and keep track of fan merchandise inventory all in one place.

5. A library of expertise. Access to career tips, tools, and advice from record executives, producers, artists, managers, and other industry experts on Artist Growth’s AGtv video portal, and more than 30K industry contacts via the Indie Bible.