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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."

29 of 410 comments (clear)

  1. The Collector in Me Cringes by Anonymous Coward · · Score: 5, Interesting

    At th thought of not owning physical media with an album. Plus I think the CD has a bonus of liner notes, art etc. I realize most people don't care about this, but I do.

    1. Re:The Collector in Me Cringes by Anonymous Coward · · Score: 3, Interesting

      Studios would put out limited CD editions of albums for collectors like yourself. They still do it for vinyls and tapes.

    2. Re:The Collector in Me Cringes by Stevyn · · Score: 2, Interesting

      You're right, most people don't care. A lot of CDs I've purchased had little content in the booklet. Sometimes it was just one piece of paper with a track listing and some legal info. If I want lyrics to a song, I'll use Google. I can get a thumbnail of the album cover on my iPod anyway. And a lot of people put all their CDs in a case anyway so they can transport them more easily. I think CD sales are going to become a niche market and stores like Fye will have to change their business to stay alive.

      Maybe something like an iTunes booth in these stores could work. You put in some cash or swipe your credit card and hook your iPod up to these and it handles the transfer of the music. Although I don't yet see how this is profitable. But my point is, these brick and mortar stores can survive if they figure out what people want and stop trying to peddle a dying market.

    3. Re:The Collector in Me Cringes by eclectro · · Score: 2, Interesting

      At th thought of not owning physical media with an album.

      I too want to have a physical object. As long as the RIAA is unable to offer DRM free alternatives, it will remain a very medium to me.

      --
      Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
    4. Re:The Collector in Me Cringes by Jason1729 · · Score: 2, Interesting

      Don't toss out those cassettes, keep them in a box somewhere are your "license" to have the song, then download a high quality version from a p2p network.

  2. Some people like to "own" a song, not a copy. by Rifter13 · · Score: 2, Interesting

    I know several people that want to own a phsyical piece of property (CD in this case), and would spend extra money, just to have the shiny CD. Not to mention those people that don't have enough knowlege about computers to actually figure out how to download music. Add to that, the hassle of having to burn music onto a CDR to play in your car, and I can STILL see a vibrant market for CDs. Give it several more years, and then I think the market will shrink further.

  3. Free-er media by Gertlex · · Score: 5, Interesting

    I still think of the cd as a freer media for getting music... I can own the cd, rip to whatever format I want, and no one is going to bother me... On the other hand, I still haven't looked hard at the online DL services (the legal ones, mind you), but I get the distinct impression that they're all going to restrict me somehow. Naivity says I'm going to want to have the music files i have now for the rest of my life.

  4. Re:Nope by slashbob22 · · Score: 4, Interesting

    There is no way CD's are going to disappear in the near future.

    As a Slashdotter and a 20-Something: The only music I have purchased online was from a gift certificate - it was so terribly DRM laden and hindered that I vowed never to go back. I will only purchase CD's, at the end of the Day I have a tangible product and I can use it anywhere I want. Yes, I fall into the category which rips CD's and if this becomes illegal then you can be sure that I will NOT help the recording industries bottom line unless they can prove that I have some control over how I use the product that I purchased.

    --
    Proof by very large bribes. QED.
  5. Re:Yes, But. by Ant2 · · Score: 2, Interesting

    So, if I go to a library with my laptop and rip a few tracks from a non-DRMed CD, is that considered fair use? I'm not breaking any encryption. Is that any different than copying a few pages out of a library book?

  6. Re:Nope by NitsujTPU · · Score: 5, Interesting

    You can strip the DRM on the iTunes music. I probably shouldn't admit to it, but this is how I listen to music under Linux. I should mention that I don't share the music after stripping the DRM and that, if there were a way to do this without stripping the DRM, I would.

    I use iTunes under Windows, then JHymn (http://www.hymn-project.org/). The unencrypted files will play problem-free under Linux and can translated into MP3s without issue as well.

  7. Barebones CDs won't cut it much longer by Y-Crate · · Score: 4, Interesting

    The problem with a lot of CDs is that very often you get the CD and an often-crap set of liner notes that increasingly doesn't even give you the lyrics to the songs or any other form of added value.

    When U2 released their last album, they promoted the hell out of the iTunes version, and released a CD version complete with a snazzy cardboard case, bonus DVD and 48-page hard-bound book. A plain vanilla CD version with just the lyrics was also sent to stores (if you didn't want to pay the reasonable markup on the mini-boxed set). Everyone I know - even fellow iTunes store addicts - ended up hunting down the deluxe version. Even people that don't particularly like the band were transfixed by the whole package when they saw it. (Pics here and here. )

    The band went into it knowing people would be tempted to download it for free, but never whined about it. Instead they offered a wide variety of choices and actually did something to make fans want to go out of their way to get the physical product - and the most expensive version of the release, at that.

    1. Re:Barebones CDs won't cut it much longer by Panascooter · · Score: 2, Interesting

      And I can attest to the effectiveness of the approach. In spite of the fact that I had already downloaded the songs i wanted, limewire style, I still went out and bought the deluxe release. I did it Because it provided more value than just a cd in a jewel case would have. There are a few artists catching on to this who have been releasing their cds with DVDs that have music videos, interviews, and even concert footage. They're including books and DVD audio/surround mixes. All of which you could surely find on the p2p network of your choice, but would certainly be kind of a hassle to find and download. As long as bands try and make cds something worth collecting, something more than just a audio file distribution method, there will be a market. And I will keep patronizing it, in spite of the utter freeness or convienience of other methods.

  8. Re:Nope by rob_squared · · Score: 5, Interesting

    Sure, physical CDs still have a market, I think they'll be useful for quite a while for boxed software products.

    Remember when Norton was selling software on Zip disks? I still chuckle at that.

    Now as for music CDs, those may be heading for a downward trend.

    --
    I don't get it.
  9. Comment removed by account_deleted · · Score: 4, Interesting

    Comment removed based on user account deletion

  10. CD - Yes, Mass Market CD - No by tengu1sd · · Score: 4, Interesting
    Mass market music is fading away. The days of the 50,000 watt AM station manufacturing hits still make corp-rat music market-teers drool. But in today's world more and more people are opting out of listening to "clearchannel inc" and The HitList(c). Independent artists can create their own recordings in the garage studio, establish web sites, host music downloads and replace the giant distributors. If you only sell 10,000 pressings you're not worth investing in to big music, on the other hand, 10,000 pressings for half a dozen albums is a tidy sum for a single artist. On other words, the long tail is stretching out as the lump in belly of the beast is digested.

    I buy more music now a days, although none of it from labels the RIAA ever made a dime from. I just got back from a music festival in Northern California and picked up a dozen albums on physical CDs. Many musicians now have their own web site and market on CDBaby. Despite free downloads and live taping allowed, sales were brisk. I'm one the minority who believes MP3 sound is inadequate, so if I like it, I'll buy it. More so from an artist who runs his own label and will see something from the sale.

  11. Yet another nail in the coffin by Slorv · · Score: 2, Interesting

    Full CDs will stay until there is an online alternative just as expensive.

    The record industry has itself to blame for us, the audience, beeing more and more geared towards individual songs rather than albums* and thus making music into just one of those small commodities like a mobile phone call or a pack of chewing gum. Some people argue that that all started with "guest producers" versions, remixes and putting cheap-to-make singles versions of songs on the CDs instead of complete albums written as a whole.

    Removing the physical CDs would be the final signal to the customers saying "If you don't want our album (that we've infact stopped making anyway) atleast buy one measly song, we even charge you just one dollar".

    If artists stopped or are incapable of thinking in terms of albums why do we still have full CDs at all? And why will we still have them for awhile, at least until the industry finds a way to sell us something we are prepaired to pay $20 for.

    Since:
    A) making a physical CD costs almost the same if your putting on one song or twenty.
    B) you need a certain turnaround from each CD sale to finance your boat... eh, business. A full CD that sells for $15-$20 is much better economy than making a CD-single that only flogs $3-5 from a customer.
    So again; Full CDs will stay until there's an online - read 'cheaper for the industry' - alternative just as expensive for the buyers.



    *Yes we've had a song based music scene before the 60's and 70's arrival of albums but that was so far back that most people in the industry have forgotten all about it. They simply do not know how to stay alive in that kind of a eco(nomical)system.

    --
    Bikers.....The only people that understand why a dog hangs his head out a car window.
  12. CD-FLAC! by bguzz · · Score: 4, Interesting

    I want CDs that, instead of Red Book audio, contain 24bit 96kHz FLAC tracks. And what about CD-Text? That could have been cool, but I don't know since I've never seen anybody actually use CD-Text. Keep me from having to use CDDB or key in all the track data. Then maybe they could include PNGs of the cover art...

    That would be way too good for customers, though. It'd probably never work. I mean, can you just think of the poor recording artists!

  13. Re:Nope (Neo-Luddites) by DoninIN · · Score: 4, Interesting

    This is more pronounced than many of the younger among you realize, for instance I'm a geek, I read slashdot every day, I am technologically literate, but I'm old, I still buy CDs when I want music I don't really see me buying an IPOD any time soon, I don't download music and while I was briefly interested in the idea of a media center PC I haven't really planned or budgeted for one at any point in the near future. Worse I have a lot of friends who think like I do, we're just old. Not so much luddites. (I have 3 PCs sitting on the desk while I type this, two dinosaurs, and two of have multiple boot, so I'm hardly a technophobe.

  14. From corporal to ethereal by Laike · · Score: 2, Interesting

    It seems like the general consensus around here is that people like the idea of having something in their hands. I mean sure it might seem nice to have a few hundred CDs lined up on a shelf to display to impress friends and neighbors but not very practical. With the advent of hard drives becoming larger and cheaper it is only a matter of time before lossless (or lossy undetectable to human ears) formats begin to catch on. And yes I know the superman hearers among us will complain about how the quality of a CD is far superior, just like the vinyl audiophiles before them. Open your mind, the CD isn't relevant anymore. Archaic... The same arguments can be made for photography as well. Sure one can make the argument that color density and tone of Fuji Velvia is far superior of any digicam. Does the general public give a shit? They want ease of use, they want portability, and they want instant gratification.

    Lets be honest here, the cd is on the way out, and any other CDesque replacement. The world is changing to a completely computer storage based system. It's a changing of the guard, and its happening all around us. From corporal to ethereal, business records, photos, television, books. It's only a matter of time. Just look at the up and coming generations, the 6-15 demographic, and see if they give a shit about having CDs in their hands. Hell no, give them something they can put on their phones, transfer to their friends. And this scares the hell out of any company that makes a profit from distributing information. You don't think book publishers shit themselves when Google decided to put an entire library on line. That's just the first crack in the dam they are trying to patch it. The cracks are getting bigger and technology is the catalysis. Who needs books, what we need is a digital book replacement, give it time... Bradbury had it right; books are going to be extinct. Give me a datapad connected to every work produced... Music, books, tv, movies, give me it all! This just isn't about CDs it's about all corporal information exchange.

    -Laike

  15. Back catalogues by BovineSpirit · · Score: 3, Interesting

    I've never seen this mentioned on Slashdot, but I think of it every time I see the 'CD sales are declining because of copyright infringement' meme repeated. CD sales are affected by a lot more than a few copyright infringers.
          When they first appeared we saw people rushing out and buying replacements for their old vinyl and tape albums. Then we saw the collectors boxsets, and now we get the desperate 'best-of' rehashes. Consumers have consumed and having replaced their old collections are mainly interested in buying new releases, and so the CD market has slowed down. What would be more interesting would be to see what has happened to sales of genuinely new releases(and a new Eagles compilation doesn't count).

  16. Re:Nope by UNIMurph · · Score: 3, Interesting

    I still buy CD's for one reason: Sound quality. The average song downloaded from a online retailor is of terrible quality, usually 192kbps or less, and i'll admit a lot of people can't tell the difference between a CD and a MP3(or other losy compression audio format) but i can and thats an issue for me. My MP3 player supports a wide range of file formats, but i usually end up useing FLAC, it eats space but it sounds much better, no digital garble, no washed out cymbols, no muffeled vocals. I guess i have to blame the crappy headphones that come with the iPod for the general publics ignorance to the way compressed audio sounds as compared to 1440kbps CD quality audio. Just give it a try, get a friend listen to the same song, on the same set of high end headphones or studio monitors, in both MP3(even 320kbps) and CD format and ask witch one sounds better. Even if it is subconcuois they will allways choose the CD audio. The CD (or other high bandwith) physical media will allways be around because the people who make the music and true audiophiles will want the high quality sound.

  17. Re:Nope by Firehed · · Score: 4, Interesting
    Others are working on it, though. Mr. Jon isn't the only one who can reverse-engineer stuff, thankfully.

    It's worth noting that myself (and many other geeks, I'd imagine) avoid using the iTMS for the sole reason of the CRAP. While 99c is still a bit much for me for lossy songs with no booklet (I've made a few exceptions, but I think they were all stuff not available locally), it'd be fine for me if it was the equivalent of .flac (lossless, no crap). I'd like the booklet, but I more or less stopped caring about the same time that the cheap bastards at the MPAA started swapping in ads for chapter indexes in DVD cases. I'll admit, though, the security tag thing being stuck to the disc itself was a bit more disenheartening than just ads or nothing.

    It's not even the vendor lock-in that bothers me with crap. Well, not entirely. I have an iPod and see no reason to change to something else, nor to carry something else in my pocket that can play music as well. One computer being able to play my music at a time is enough for me, believe it or not, and while I don't like the idea of a limitation, I also see no reason that I'd need to allow five different machines to be able to play protected media at once. The principle of the product vendor not only telling me what I can or cannot do with my product but then enforcing it (it's not like warning labels - there's nothing that technically prevents you from using a hairdryer in the shower except common sense) is just wrong in every way imaginable. In fact I'd much rather see enforcable warning labels than what's going on digitally - I don't need to hear about the guy who's suing the chainsaw company because he thought he's tough enough to stop the blade with his hand, despite what the label said.

    Once someone goes and cracks iTMSv6 encryption, I'll be much more willing to use the store to buy music. For the time being, I really can't be bothered to get a v5 installer going on a separate computer with a separate account and a separate card (which, seeing that I have a single debit and no credit, could be problematic), then jHymn the music, convert it to MP3 and add it back into the library of the computer that I actually sync to the iPod and play music from. Could I? Yes, but the amount of effort I'd have to put in would almost make it easier to just get music the old fashioned way.

    Ruling out piracy, of course. It's not as if I'd prefer to pay nothing for a higher quality and unprotected version of the song, which has a considerably better chance of having a scan of the booklet than a download from iTMS. Nope, not a chance. I love giving money to the people going out of everyone's way to screw me over and lock me into a specific vendor.

    --
    How are sites slashdotted when nobody reads TFAs?
  18. Re:What I'd like to see... by TheRaven64 · · Score: 2, Interesting

    In the January sales last year, I bought a classical music boxed set. It contained 40 CDs, and cost £25. At this price, each CD cost less than a single track on iTunes. About 80% of it was both good quality and not a duplicate of something I already owned (in a couple of cases, it was a better recording than the version I had). A this price, I would buy enough music to need to upgrade my iPod annually. At £5-10 for a single CD, I generally have better things to spend my money on.

    --
    I am TheRaven on Soylent News
  19. The Physical CD dead? Hardly! by Phil+Urich · · Score: 2, Interesting

    Hardly. Nowadays I often even buy vinyl. Hah!

    No, seriously now. For one, services like iTunes don't offer things losslessly; for two, they restrict my use of them too much for me to even bother (hell, I don't even have many convenient ways to play fuckin' .m4a files, much less DRMed ones . . . but my DAP plays ogg just fine, so I can take that anywhere with me no problem, and while it's too small of a flash drive to really hold FLAC comfortably it's a snap to drag-drop convert FLAC to ogg-vorbis for the run).

    Thirdly, packaging. I mean, let's be honest now, it's been possible forever now to transmit text electronically quite well, but books are far from gone. It's just extra nice, convenient and so forth to have an actual physical copy in posession. Which is actually why I often buy albums I like in Vinyl now; I can usually just download lossless versions for digital use on the side (which is often how I came to like the album enough to buy it), and if you're going to go for the physical packaging, why not go for the gusto? Now, vinyl isn't exactly the easiest to get albums or singles in, so it's not always an option and many people would rather have a CD instead, but the fact that even now there are stores that sell a large volume of actual records speaks to the desire people have to actually own a physical copy of something (and what's more physical than analog?).

    So no, I certainly don't think CDs are going away anytime soon. Yeah yeah, they'll decrease in prominence and sales, they might not even stay at the top of the food chain . . . but there's a long ways from that to complete oblivion as the title suggests (not that I'm sure the article claims such; in true slashdottian spirit I've avoided reading TFA).

    Furthermore, if you expand the definition of CDs a bit and go into other forms of physically sold disks, there's alot of room for the medium to evolve from here. As noted, there aren't any major services offering lossless audio (unless I've been misinformed?), meanwhile we have emerging media types like DVDA and the growing practice of either two-sided disks or just a CD and a DVD to give extra content like videos along with albums, so even in the mere digital product the physical disks retain certain advantages over the online services.

    Besides, if anything is going to fall to the power of the internet, I think that print newspapers will go before CDs. So maybe once/if that happens we can start thinking about perfoming the final rites for Compact Disks.

    --
    I remember sigs. Oh, a simpler time!
  20. i hope music cd stays by pikine · · Score: 2, Interesting
    Now as for music CDs, those may be heading for a downward trend.

    When I was young and long before the time of Napster, MP3 used to be the only way I get new music. It was a time when you could find Spice Girls MP3s openly on some web sites and nobody cared. It was a time that it took a Pentium 100Mhz computer 70% of CPU time to play MP3s. The computer I used was hooked up with some crappy speakers, and I couldn't care less.

    Nowadays I pretty much have disowned my MP3 collection, and I prefer buying physical CD to get new music. There are two reasons.

    1. I now have a much better pair of speakers that allow me to hear rattle in a poorly compressed MP3, which was common in my old MP3 collection.
    2. I now have my own income that I can buy whatever I want without asking my parents for the money.


    Although WMV and AAC are so good that you don't hear the rattle, it is sad the vendors try to show superiority of their formats by encouraging the use of low bitrates (less than or equal to 128kbps). Ogg Vorbis also does a good job. Nowadays it's hard to identify compression artifects, but to my ears compressed music just sounds shallow, especially pay attention to cymbal and snare drums. I also find it more difficult to identify what instrument is playing what part by ear, when the music is compressed.

    Well, this is not surprising, since lossy audio compression by design removes the sounds that you don't consciously hear. When you consciously try to hear it, it's just not there. It's like trying to zoom in to a JPEG compressed image and examine the texture, only to find the texture is lost.

    In general, I think a music CD priced at $15 is still worth the additional amount of information that you retain uncompressed.
    --
    I once had a signature.
  21. Re:Nope by binner1 · · Score: 2, Interesting

    Yah, I'm a CD buyer as well. I download stuff here and there, and I have most of my collection ripped to .ogg files, but I still like to have a good old CD in my hands sometimes. For me, I like supporting the artists I really like (be it little indie bands that press their own, or big names that put $$ in the hands of the RIAA)...I really don't even like having CDR's in my 'collection' as I feel that takes away from it. I think it's to do with having the CD jacket, cover art, etc that goes with the music. For me, that's a part of the art of it...

    I really don't like that most of my $15-20 goes to fat cats instead of the artists, and I do realize that cd-covers.org (or whatever) is out there, but I'm not likely to change anytime soon.

    That being said, I'm purchasing fewer CD's now than ever. Maybe I'm getting old and not finding as many good new bands that catch my ear, or having a family is changing my lifestyle (no time to listen to it all...?), I'm not sure.

    Anyway, that's where I stand on this. (If anyone cares.)

    -Ben

  22. Re:Nope, sell music people want to listen to... by Nasarius · · Score: 2, Interesting
    I agree with pretty much everything you've said. I admit, to my slight embarassment, that I've found a haven of sorts in Dutch pop (most sing in English). Relatively obscure artists like K's Choice, Anouk, Venus in Flames, Sarah Bettens, Woodface, and Admiral Freebee are still releasing some pretty good stuff. It ain't Pink Floyd, but it's so much better than mainstream US stuff. I'm someone who can't sit through the whole Coldplay album that everyone raved about.

    I also love Bruce Cockburn, who was amazing in the 70s, mixed in the 80s, and back to great in the 90s.

    Point is, there's still good stuff out there, and that doesn't mean just filling out your Zeppelin bootleg collection. Turn off the radio and talk to people who share your tastes. Oh, and go to a Derek Trucks Band concert.

    --
    LOAD "SIG",8,1
  23. hey, it echoes in this cave! I'll invent SHOUTING! by timothy · · Score: 2, Interesting

    Well, it's nice and warm in the time-warp bubble, I assure you.

    Compared to the "future" media (music either downloaded for a fee, or on high-density CD-shaped media, or I suppose sold on flash media or other newfangledness), CDs are good IMO because the players are everywhere (new optical drives playing CD-shaped disks are all compatible, but old CD-ROM drives are out of luck playing Blue-Ray / HD-DVD / etc), and because they're *physical.* That has its drawbacks, but I'm glad that my CDs -- mostly in cold storage now -- are still around for me to rip anew if necessary. New recording techniques can be higher density of course, but most downloadable music (whatever its recording pedigree) is highly compressed; with CDs I can choose the compression level (at least up to the limits of the disk ;)).

    Also, related to the ubiquity of the players, is that the disks' content are mostly amenable to no-loss conversion to other data carrier, and they have to be if they're going to play on any standard CD player. (Not to argue about Sony rootkits etc -- that's why I say 'mostly.')That's an issue I wish wasn't important, but there ya have it.

    timothy

    --
    jrnl: http://tinyurl.com/c2l8yr / foes: http://tinyurl.com/ckjno5
  24. Re:I'l print to that! by kesuki · · Score: 4, Interesting

    2005. http://news.monstersandcritics.com/business/articl e_1137269.php/U.S._losing_pulp_and_paper_mill_capa city

    if like me you lived in one of the larger paper lumber harvesting regions of the US like me you'd have known that paper companies had been liquidating their assets for more than a year, to try to compensate for lower demand/more competeitive global markets.

    yup, the sale of former timbering grounds have freed up massive chunks of valuable real-estate at rock bottom prices, at least here in wisconsin.