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The State of Digital Music in 2006

Posted by ryuzaki0 on from the iknew-that dept.

wh0pper writes "Designtechnica has an excellent article on the state of digital music in 2006. Digital music accounted for only six percent of total music sales in 2005. Yet even that is a massive increase over the year before, a whopping 194 percent, which is fiscally valuable as the sales of CDs continue to decrease (although even with digital sales, the record labels experienced another downturn in 2005). While the young, usually the first to adopt and adapt to new technology, have been downloading and swapping music for quite some time, there's been a ripple effect into the older, warier area of the population, one that will only increase. Thank--or blame--Apple and its iPod, or any of the many other makes selling like hotcakes in the stores.

4 of 127 comments (clear)

  1. Quality over Quantity by skynetos · · Score: 4, Insightful

    I prefer CD's only as I want quality and freedom. I like to have the right to rip them to FLAC and put them on my iAudio X5. DRM and compressed downloaded music just does not make sense. Quality over Quantity I always say.

    1. Re:Quality over Quantity by O_at_TT · · Score: 5, Insightful

      Quality over Quantity...

      While Baby-Boomers are now part of this market it is still dominated by younger people who apparently don't care so much about quality. It seems the way people listen to music is changing parallel to the way the music is being distributed. People can now carry so much music in their pocket that they listen to music while doing anything and everything. Music is in essence background music for their lives. For that reason "quantity" is king for these people and "quality" is very secondary. Gone are the days where "listening to music" meant putting an album on in your living room and sitting through the whole thing while doing little other than enjoying the music.

      So for that reason I think your point of view is unfortunately a minority, and a shrinking one.

      -Oliver / TreasureTunes.com

  2. It's been a long way coming by teutonic_leech · · Score: 5, Insightful

    The only thing that surprises me is how long this industry fought teeth and nails against this. Even now, they are only embracing the online distribution of digital media because they are forced to. Steve Jobs kicked open the online music market and he did the same again with online distribution of videos and now full features. It always takes a visionary with capabilities to take that first step - a smaller company would have been squashed early on. In some ways it's discouraging for small entrepreneurs like me because it paints a picture: don't you think I wasn't dreaming about an iTunes like music store a long time ago? Well, along with power and influence Steve also brought along the iPod, which was another puzzle needed to that piece. He basically had to put all the pieces together, singlehandedly (is that a word?). That's his genius and his vision and that's why he's cleaning up right now. Had I gone to Sony with a software just like iTunes on my laptop 5 years ago they would have just laughed at it. It sometimes takes a lot more than vision and talent to realize a business opportunity, some are tougher to crack than others.
    The same can be said about the video distribution business - without Jobs and iTunes we'd still be in the dark ages - just look at the ridiculous blunder of Sony and the PSP - talking about not being able to see the forest before the trees! And in the case of Sony - they even had a content library they could have thrown into the equation. Well, I guess those higher rank managers must get paid those multi-million for their smashing good looks - can't be the types of decision they make or their vision...

  3. Works better? by neoshroom · · Score: 4, Insightful

    A couple more might join the fray, but the lines have essentially already been drawn, with everyone gunning for iTunes to take chunks out of its share. That could well happen; the ongoing supremacy of Steve Jobs's baby is far from guaranteed. Once someone else figures out a model that works better for the consumer, actually listening to and providing what customers really want, all bets will be off. And, sure as eggs is eggs, it'll happen.

    I don't buy that. What the consumers want is 95% of what Apple is already delivering. Consumers prefer ala carte music tracks to forced albums or subscription models by far. Consumers want ease of use and they want simplicity. They want an all-in-one solution. The only way you can beat Apple now is on price or on freedom (no DRM portability-type freedom). Apple probably has enough clout to beat most competitors on price and the RIAA simply isn't going to agree to any less restrictive DRM or DRM free solutions.

    Its too bad "all bets will be off." Apple keeping their dominance is a bet I'd gladly take.

    --
    Elephant Essays - Custom Ivy-league papers at community college prices.

    --
    Big apple, new Yorik, undig it, something's unrotting in Edenmark.