Nielsen SoundScan is an information system created by Mike Fine and Mike Shalett that tracks sales of music and music video products throughout the United States and Canada. Data is collected weekly and made available every Wednesday to subscribers, which include executives from all facets of record companies, publishing firms, music retailers, independent promoters, film and TV, and artist management. SoundScan is the sales source for the Billboard music charts.

Nielsen SoundScan began tracking sales data for Neilsen on March 1, 1991 and the first Hot 100 chart to debut with the system was released on November 301991. Previously, Billboard tracked sales by calling stores across the U.S. and asking about sales - a method that was inherently error-prone and open to outright fraud.

The Recording Industry Association of America also tracks sales (or more specifically, shipments less potential returns) on a long-term basis through the RIAA certification system; it has never used either Nielsen SoundScan or the store-calling method.

How Nielsen SoundScan tracks sales

Sales data from cash registers is collected from 14,000 retail, mass merchant, and non-traditional (on-line stores, venues, digital music services, etc.) outlets in the United States and Canada.

The requirements for reporting sales to Nielsen SoundScan are that your store has Internet access and a Point Of Sales (POS) Inventory System. A POS System means that you scan the bar codes of the products you sell. There is a specific format that is required for submitting sales to Nielsen SoundScan. It is a simple text file, consisting of all the UPC's sold and the quantities per UPC on a weekly basis. Sales collected from Monday-Sunday or Sunday-Saturday are reported to SoundScan every Monday and made available to SoundScan subscribers every Wednesday.

Nielsen SoundScan clients include:

• All major and many independent labels.
• Distribution companies.
• Artist managers and booking agents.
• Concert promoters and venue owners.
• Online retailers and "digital delivery" companies.

Registering a product to be tracked by SoundScan

Anyone selling a music product with its own unique UPC or ISRC code may register that product to be tracked by Nielsen SoundScan. Registration is free and simply requires that a Title Addition Sheet be filled out and sent back. Registration takes approximately 10-15 business days, so it is recommended that the form be submitted at least 3 weeks prior to the product's release date.

Viewing SoundScan Data

SoundScan is a subscription based service with many packages available for varying levels of access. For information about accessing SoundScan's copyrighted sales data, you must contact the Sales or Client Services departments directly. Billboard publishes music charts on a weekly basis which use SoundScan data, but do not give sales figures.