Death knell sounds for CDs published by The Globe and Mail in Canada is a story worth reading. The opening two paragraphs offer chilling reading for any music retailer.
The compact disc has less than three years left in its reign atop the music industry in Canada, with new data on music sales indicating the download will officially be king by 2011.
Physical music distribution, defined largely by the sale of compact discs, is eroding faster than expected, while online music is growing quickly, says a report published Wednesday by PriceWaterhouseCoopers LLP.
This is a story not just about music. It is about smart always-on devices, the desire for specific content rather than aggregated content and the elimination of old world supply chains.
While it sounds like doom and gloom, it is as much about opportunity. It relates to newsagents as much as music retailers.
You’re right – what I find very interesting is that people will pay hundreds of dollars for video games but have a different attitude to online music and in the near future all video and movies.
Artists need to make money.
For online models to pay artists their just income requires a micropayment facility through ISP’s but unfortunately it appears the old encumbants are taking the old big stick approach.