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Is the Physical CD Still A Viable Market?
An anonymous reader writes "With iTunes and P2P networking dominating the online music scene, does the physical CD have any place in our future? Slyck is running an article on the study conducted by the NPD Group." From the article: "Since its peak sales year in 1999, there has been a steady deterioration in the number of physical CDs sold and shipped. The most immediate blame is typically placed on piracy, however over the course of the last six years this has proven superficial to reasons of more substance."
CD? Dead. CDR? Alive and kicking! >:)
Trolling is a art,
Not everyone who listens to music even owns a computer!
Many people, while not Luddites, are not as tied to technology as many Slashdottes and 20-somethings.
"Who are in control, they are not in control of anything - they don't even control themselves!" - Glen Beck
I know this is not what the author was talking about, but there is plenty of life left in the lowly music CD in the form of short production sales. You know the types where the band sells them after performing for $10-15. Also as production costs drop, on burning speeds increase there may well be a market for all sorts of other on demand CD writing. The music store is the thing that is in danger, not the CD.
This is probably a more reasonable question to apply to games, especially online games. With digital distribution of games like through Steam, the need for physical media becomes obsolete. Steam has a good way of dealing with those who don't want to be online all the time as well, you just have it remember you, and you can still play a game that has been activated. But it also is becoming more and more the case for music as well. But of corse there are those who still want physical property to lie around and take up space, and to wear out in their cd players. The counterpoint to that being that could burn their digital music to cd anyway.
I encrypt all my files with Double XOR Encryption!
CDs are necessary because they offer a constant, nondegrading which is free from the compatibility and format hassles of digital distribution and which you can be fairly guaranteed will work on simple, easily acquirable, and arbitrary hardware into the reasonable future.
Of course, the people actually selling CDs are no longer offering this, now that they load up their CDs with "copy protection" technologies which circumvent security measures, often mimic viruses, and in some cases fill the error-checking bits with garbage, thus hastening degradation of the CD-- and which the consumer is giving no warning that these technologies are present.
Which is why I don't buy CDs anymore.
Yes, but.
(Note that you can legally acquire a lossless DRM-free set of bits. Whether or not it's legal to rip those DRM-free bits, on account of your computer not automatically running the DRM/Spyware/Rootkit shipped with the CD, or on account of it not being able to run the DRM/Spyware/Rootkit shipped with the CD, has yet to be determined by the courts. But acquiring the DRM-free bits is legal.)
The most interesting case of the upcoming decade will be whether the DMCA's anti-circumvention rules apply to a DRM-laden CD - ripped to MP3 on a machine that didn't support Windows Autoplay, from a drive and/or OS that presents both the .wav "files" and the data track with the autoplaying rootkit as separate sets of files, without any intervention from the user.
iTunes and such has reduced my need for CDs. I still buy them when I find that I want more than 2 songs from any given CD. I figure it this way, if I really like two of the songs I will probably like more of them, so get the real thing. Something about having the "physical" CD around.
Now what really has crimped my CD buying is MP3s. Not those I buy or download but those I ripped. I am going through music I haven't listened to in many years. Discovering songs I enjoyed way back when and again now.
Summary, 75% of my new music is individual tracks from iTunes. The remaining 25% only occurs when I find more than a pair of tracks I like on a CD. Of course that means soundtracks are always purchased.
Are CDs doomed? Probably, simple reason is that they have now become cumbersome. When I can cram a thousand songs in a device less than the size of a CD (width) it becomes apparent which is more convienent for taking the music with me. Its only a matter of time before that convienence influences purchasing them in the first place.
* Winners compare their achievements to their goals, losers compare theirs to that of others.
Yes. CDs still make sense even in the iPod age because they provide a durable backup medium even when the content is transfered to a digital device.
I will keep buying CDs. I don't listen to the actual CD anymore: I just rip it, put the files on my RAID server and listen to the digital version via my computer or my iPod and keep the CD safe in storage. If anything happens to my music (or if, God forbid, i need to re-rip it because a new/better format comes along), I still have the original CD (which I paid for).
Personally, I hate iTunes and most online digital services: they will end up killing physical media, and that's a bad thing. CDs are (mostly/theoretically) DRM free and you can listen to them on a variety of devices. Digital media is often encumbered by lossy compression and/or DRM.
For me, CD is still viable, and so is vinyl! I see my friend buying individual songs off iTunes for the price of a sandwich and I laugh at him. If you're going to get digital rips of music (and play them on awful tinny laptop speakers), you may as well just download it for free. When I pay for music I want to be able to touch it. If you've never experienced the joy of owning a 12" picture disc and sleeve, you've never loved music.
It's a nice idea but it will never happen due to two things - customer perceptions & record company greed.
Think about it - let's say you suddenly decide you like The Beatles and start collecting their recordings. You'll probably end up collecting, say, 20+ albums by them - that's $200/£200/200 the record company gets out of you in total. If you buy the albums on CD, you don't notice you're spending that money because you buy, say, 1 CD a week as you can afford them. And when you have them all, you can look at the nice row of 20 Beatles albums on your bookshelf and feel that the money you spent was worth it because you have a nice big fat row of CDs in front of you.
But there's no way you're going to spend $200/£200/200 on a single Blu-Ray disc. It's a psychological thing - you pick up the case in the shop and it doesn't *feel* like it's worth $200; so you don't buy it.
Look at DVD - in theory, we should be all playing audio DVDs now because for the same size of disc, you get anything up to 10x the data storage on a DVD than a CD. But if record companies released audio DVDs that were just straight conversions of existing CD albums (without, say, 5.1 enhancements to the music) everyone would feel cheated because they'd know you could get so much more on each DVD disc - so they wouldn't buy them.
I'm pretty much the same with my Gameboy Advance, Gamecube and PC games. I've bought very few GBA games because when I look at the size of the box (which is oversized anyway for the size of cartridge inside), it doesn't *feel* like it's worth $50/£35/50. I'm more likely to spend the same money on a Gamecube or PC game because psychologically I feel like I'm getting more for my money.
From a storage & technical perspective, it would be great to cram my racks of CDs into a space about 1/100th of the size but from selling actual products, this is as much about selling products as it is about technological advancement.
DVD is the classic example. I now own no VHS videos because I've replaced everything now with DVD. I've therefore bought a lot of movies at least twice in my lifetime (perhaps even more times when I've bought the standard edition DVD, then The Directors' Cut later on). One issue that's convinced me to do that are all the "extras" I get like commentaries, documentaries, deleted scenes, etc. yet, in reality, I probably watch all of those on about 1/4 of the DVDs I actually buy.
Yes, I admit it. I've fallen for the marketing of DVD hook, line and sinker...
Gentoo Linux - another day, another USE flag.
I just visit yoour side, but I don't get it ....
a) its your own music, yes?
b) you sell it via a web site?
c) you sell it as CD but not as download able (buyable) mp3?
The main problem with your site is very simple: no instant satisfaction.
The buyer is there and he wants it now not at some undefined time in the future (after mail delievery). Instead of buying your product delayed he is going to buy something else instantly some minutes later.
The second thing is: the prices are not compdetitive (but they are ok if you bear in mind your manufacturing costs in that small volumes, how ever the ordinary customer does not know that, nor is he willing to pay the price).
angel'o'sphere
Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
... there were several billion dollars of CDs sold last year, and there will be several billion dollars of CDs sold next year. Even VHS, a format which is inferior in every possible way to DVD (a player for which can be had for less than the price of the media that plays on it), is still a multi-billion a year business. The wave of the future it ain't, but CDs will be a *viable, profitable business* for decades.
Help poke pirates in the eyepatch, arr.
...exactly parallels the huge increase in consumers having their own burners, then buying blanks by the small quantity. Then they hit the pre recorded rack and look at the titles and prices. Hmmmm. It ain't rocket surgery then.
nConsumers found out how much they were being ripped off/gouged by a quarters worth of plastic and 10 cents worth of paper and revolted. Napster came about because people got *tired* of shelling out big bucks for music CDs.
And to this day, the millionaires who have no coneption of what a dollar is worth to joe working stiff and who make the decisions on pricing for discs at the RIAA vendors are STILL clueless to this. To them, 10 to 20 bucks is like a nickle or a dime to regular people, they think it's cheap! They simply *don't* get it. They are incapable of relating because they are millionaires. They can intellectualize it all day long, they just won't understand it was the pricing that lead to "piracy" way more than just the ability to do so. In fact, the "ability to do so" has been driven precisely by outrageous pricing on music and movies.
Those over priced bit sellers are their own worst enemies.
And I don't want to hear it can't be done, you can walk into any walmart and see older movies on DVD for two dollars.
And that's all bits on a disk are worth. Bit sellers need to get a clue back to the "volume sales" concept. At two bucks, they would sell a lot more disks, and make more money, even if the net per disk was lower.
You'll have to pry the 44 khz stream from my cold dead hands. Until I can be assured of DRM free master quality recordings, I'll never stop buying CDs.
Try substituting "my music" for "MP3" in that sentence.
It's your choice, of course, what you want to sell: products or content. But it sounds like you're suffering from the age-old problem of not selling what your (potential) customers want.
http://alternatives.rzero.com/
What does the price of one have to do with the price of the other? Aside from the fact that this is digital information on a shiny plastic disk, there's no comparison. But, hey, I'll compare the two anyway.
A movie released on a DVD has usually made back its production costs at the box office (and then some). DVD/VHS sales and rentals are a secondary source of revenue for the studio.
A music CD's sales revenues are the main event for the artist and the label (and no, very few bands make money off of touring and merchandising...very, very few).
Okay, that's the supply side of things. How about the demand side?
I own some of my favorite movies on DVD. I own a lot of music CDs, too. I will maybe watch a DVD about five or six times before I get sort of tired of it and lend it to a friend or just stop watching it. Maybe I'll grab it off the shelf to play for a friend that hasn't seen it (and see it through their eyes, which freshens the experience).
By contrast, I can't count the number of times I've played my favorite CDs. I listen at home, in the car, at work. If I had a nickel for every time I listened to Television's Marquee Moon or Nirvana's Nevermind, I'd be rich enough to throw Steve Ballmer off of the Space Needle and get off on a technicality. $15 spent on a CD is a greater value to me than the same $15 spent on a DVD. Amortize that $15 against the amount of enjoyment you get from that creative work.
k.
"In spite of everything, I still believe that people are really good at heart." - Anne Frank