Circuit City, one of the country's biggest sellers of recorded music, announced a loss of $16 million for the third quarter ending November 30, 2006. (Read press release.) That's in contrast to a gain of $10.1 million last year.

No specific number for recorded music sales was given, only a mention that "comparable store sales in music software declined by double digits." Video sales declined by "mid-single digits." Music-related hardware fared better. Sales of portable digital audio products were flat and accessories grew by "high-single digits."

The big decline at Circuit City echos recent results from Borders, where sales of recorded music were down 17.8% over the same period last year.