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The State of Digital Music in 2006

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.

30 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 MikeXpop · · Score: 5, Informative

      You need an original CD to rip into Apple Lossless. And if you rip anything from an original CD, there's no DRM whatsoever.

      --
      Etiquette is etiquette. He kills his mother but he can't wear grey trousers.
    2. 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

    3. Re:Quality over Quantity by ClamIAm · · Score: 2, Insightful

      Is Apple's lossless format patent- and royalty-free? I didn't think so.

    4. Re:Quality over Quantity by billcopc · · Score: 2, Insightful

      Young people don't care about quality because they haven't experienced it in the first place. Twelve years ago when I was ripping MP3's in DOS at 112kbps, I couldn't hear the quality loss because I had lame speakers (with overzealous EQ) and lame headphones on a $99 discman. Everything sounded like shit to me and that's all I had ever known, so it was ok.

      Then I started making good money and bought myself a really sick stereo, and I started having aural orgasms at the staggering detail I discovered in my music collection. I also heard the dreaded ringing and swishing artifacts of crappy MP3 encoders, and started flaming anyone on Napster who used Xing Encoder ;) Now I have an even sicker car stereo with funky noise shaping and filtering, but I can still tell when a track is poorly encoded.. my ears can tell the sound ran out of breath, but most people who ride with me think I'm just a crazy old music nerd and complain that I should get more bass :P

      The fact is simply that different people have different ears. The Ipod has above-average sound quality and seems to put in some amount of effort to reduce compression artifacts, for most people this is as good as it gets. For the rest of us audio freaks, there are alternatives.

      --
      -Billco, Fnarg.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. When did CDs become analog? by caenorhabditas · · Score: 5, Funny

    I always thought that CDs were digital. Now I hear that digital music only accounts for six percent of music sales? I knew LPs were making a bit of a comeback, but I didn't know it was that big. Everyone must be really enjoying that "warmer" sound.

    1. Re:When did CDs become analog? by Wolfbone · · Score: 2

      It's pretty astounding that not only was TFA author ignorant of the most basic fact about his/her subject but the glaring error was missed again and again before it got here.

    2. Re:When did CDs become analog? by Copy,+Paste,+Repeat · · Score: 2

      What's astounding is your expectation that either Slashdot submitters or Slashdot editors care enough to notice, much less fix, these glaring errors.

    3. Re:When did CDs become analog? by Beryllium+Sphere(tm) · · Score: 4, Funny

      Wait, the salesman at Definitive Audio told me that I needed to buy dampening rings to put on my CDs to "clean up the waveform". If CDs were digital, for example with 16 bit samples at 44.1kHz with 6 bits of Reed-Solomon error correction for every 8 bits of data and some interleaving to mitigate scratches, then a sales rep at a High End retailer would have been talking nonsense!

  4. MP3 Blogs and Netlabels by dilvie · · Score: 2, Informative

    This story isn't complete without mentioning MP3 blogs and netlabels. Millions of songs were downloaded last week from the tens of thousands of MP3 blogs and netlabels dishing out free music from mostly non-commercial websites. A quick look at a few of the best ones will reveal that a lot of the music being served up is top quality.

    Enjoy some free music.
    1. Re:MP3 Blogs and Netlabels by dilvie · · Score: 4, Interesting

      Exactly my point. It's really a whole different ball-game now. I've been playing ball with a bunch of indie labels and artists, and we're achieving some pretty stunning distribution numbers. Some of the top features on my MP3 blog have been downloaded over 60,000 times each. My own music had a quarter-million downloads last month -- and this is for electronic music, where 10,000 record sales is considered a hit.

      My friends in Taxi Doll are just an indie group going it alone (as of this writing), and they've managed to got their music into films staring J-Lo and Harrison Ford. They're taking advantage of digital distribution and free downloads to help them get the word out, and they've got plans to expand the strategy in the future.

      Why are people still talking about the music industry like it's 1997? Whole genres have broken off from the major outlets, and started hacking it alone. There are tons of indies on sites like Beatport and CD Baby selling digital downloads and CDs with no DRM. Imagine that -- music producers giving people what they want, rather than force feeding them crippled songs.

      There's a huge undercurrent in the music industry right now, and the storm is brewing. The old industry is a sinking ship. Some of us have been saying it for years, but the day of reckoning is coming quickly, now.

  5. For all you DRM neysayers by 7Prime · · Score: 4, Interesting

    Remember that 30 years ago, we had vinyl and cassette tapes. Vinyl was easily rippable, although "ripping" one meant something a little different back then. Cassette tapes sounded like total crap. If you think about it, even *with* DRM, we've come a long way in quality and ease of copying. And don't worry about compression for the moment, this is just a passing phase while non-lossy algorythms become more streamlined and connection speeds get faster. DRM is a neccessary evil, unfortunately, because no record company, in their right mind, would agree to selling media without it. Thankfully, there are many quick, and fairly painless ways of getting past Apple's DRM if you're really worried about it (I'm amazed that record companies agreed to FairPlay, it's so easy to bypass).

    --
    Multiplayer Gaming (defined): Sitting around, discussing single-player games with my friends, at the bar.
    1. Re:For all you DRM neysayers by Hao+Wu · · Score: 2, Informative
      Cassette tapes sounded like total crap.

      Cassettes sound a LOT better if you only use one side. (Of course albums were almost never sold that way.)

      I have to admit, iTunes has temporarily killed my appreciation of music. Making playlists is a tedious task of sorting and searching for songs I like -- which means having to listen to songs I DON'T like in order to weed them out.

      I have played all of my favorite albums to death... I don't enjoy any of them anymore.

      It's much like a drug or any addiction - once you get all you want from it, then you become numb to it, and you barely enjoy it, and then it's just DULL.

      The only way music excites me now is by hearing those songs on the radio, where it's comforting to know that I am not the only loser who loves a certain tune...

      --
      I suggest you read Slashdot
    2. Re:For all you DRM neysayers by DRM_is_Stupid · · Score: 2, Insightful

      ... no record company, in their right mind, would agree to selling media without it.

      Only until recently, all record companies sold digital, lossless, DRM-free music. All CDs that I buy are DRM-free, not because I have been avoiding DRM CDs (although I would), I just haven't encountered them from the artists that I am interested in. I doubt that the CD DRMs are hard to crack (just disable autorun?), but with their warnings stickers, that it may break my CD player, my CD drive, or my PC, and that nobody will refund me the CD or the damaged hardware if that happened, makes me not want to buy it at all even if I didn't mind the copy restrictions. So yeah, 100% of the CDs that I buy come from record companies that didn't add DRM.

    3. Re:For all you DRM neysayers by ozmanjusri · · Score: 2, Interesting
      DRM is a neccessary evil, unfortunately, because no record company, in their right mind, would agree to selling media without it.

      No, record companies are an unnecessary evil and will eventually die the way of all dinosaurs. DRM is one of the consequences of their death-throes, and will subside and vanish once the beast is dead.

      --
      "I've got more toys than Teruhisa Kitahara."
    4. Re:For all you DRM neysayers by pNutz · · Score: 2

      Not true at all

      320bps VBR MP3s:

      http://www.audiolunchbox.com/
      http://www.magnatune.com/
      http://www.bleep.com/, who sells FLACs as well.

      There are more.

      --
      Death and danger are my various breads and various butters.
    5. Re:For all you DRM neysayers by znode · · Score: 2, Interesting
      320bps VBR MP3s:
      What, exactly, are 320bps VBR MP3s?

      For one, most lossy audio work around the 160-250kbps ballpark.

      For two, the highest VBR preset in LAME, -V0 (--preset extreme before 3.97), has a target bitrate of just 240kbps. I don't see how you can get a 320kbps VBR mp3. Indeed, 320kbps was formerly known as the CBR --preset insane (now simply -b 320 in 3.97), and it is the highest bitrate defined in the mp3 standard[1] -- hardly something you can be variable about.

      [1] Yes, in LAME you can force it up to 384kbps with --freeformat, but that's hardly recommended usage as the encoder does next to nothing at such high bitrates.
  6. AAC is a standard, dates back to 1997 by green+pizza · · Score: 2, Informative

    Both a MPEG and ISO/IEC standard...

    http://en.wikipedia.org/wiki/Advanced_Audio_Coding

  7. Apple is one step in the right direction. by twitter · · Score: 3, Interesting
    My mom is a good example of where things are going. I showed her my cheap Ilo player from Walmart ($50 baby) and an Ari Hest Concert from archive.org and suddenly "digital music" made sense to her. If she was not hoplessly hooked on Windoze, I'd set her up with Amarok and the usb-device script and that would be that. That's not the case, so I recommended an Ipod. Even she knows that music+windoze= crashed computer, so the free software may come later to her old laptop which still runs WinME! If she can get it, anyone can.

    The RIAA is over. Apple makes it easy for people to spend their money on music but the RIAA way is not the future. Sales are only a small piece of the picture. More and more, reputations are not going to be built on radio play but on web play. Bands that understand this are going to be here tomorrow and the rest are going to look like slaves to greedy pigs. Portable music devices can hold more songs than the average radio station can afford to broadcast. To the user, it's all killer and no annoying adverts. The "Industry" is fighting back with satellite radio and FM crap flooding but it's not good enough. Players like Apple are going to help transition the industry to it's less centralized and less parasitic future. The free market forces and free software will move in and make life better for everyone, especially the artists.

    --

    Friends don't help friends install M$ junk.

  8. CDs are physical, downloads are digital by macslut · · Score: 2, Interesting

    This keeps coming up. Note that the writers aren't calling CDs analog, but rather comparing the physical media of CDs to (digital) downloads which are delivered absent of a physical media.

  9. The tipping point is near by tentimestwenty · · Score: 5, Interesting

    As a record store owner and the webmaster for RecordStoreReview.com I have a pretty good read on where things are going. This gradual decline in physical sales is about to reach the tipping point where the distribution model crumbles and downloads increase exponentially. It might not happen in 2006 but 2007 is very likely. At the store level, there just isn't sustainable profit from physical sales.

  10. 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.
  11. Re:Cost over Quality by CastrTroy · · Score: 2, Interesting

    I usually don't feel like supporting an artist unless I feel that the album is worth buying. I don't think it's worth supporting an artist who can only produce 1 good song. Also, most the the CD's i've bought recently have been $15. You can often find old stuff for even cheapter, $10. I find that the quality and freedom are well worth the extra cash.

    --

    Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
  12. HAHAHAHA ROFL (funniest april fools joke yet) by Edmund+Blackadder · · Score: 2, Insightful

    This is the funniest April fools joke yet. State of digital music. Ipds. ROFL. How do they come up with this stuff?

    I mean look at the "news story" -- just a bunch of fluff sayng absolutely nothing new (or nothing that hasnt been repeated a thousand times on slashdot), nothing of any technical or scientific interest and designed merely to get a bunch of Apple fanboys to feel good about themselves to get Apple some good publicity and to get designtechnica (whatever the fcuk that is) some extra hits.

    As if that would ever be put on Slashdot. I mean only stuff that matters gets shown here. But it makes for a funny joke. HAHAHAHA

  13. Nothing to complain about by tfcdesign · · Score: 2, Insightful

    Apple foots all the bill while one measly digital file is duplicated over and over. iTMS is pure profit for the music industry.

    F*ck the RIAA! Buy used CDS!

  14. Re:And no OGG support by Firehed · · Score: 3, Interesting
    What do you expect? OGG is barely popular even among geeks, let alone in the mainstream. I'm sure that if you asked 95% of iTMS users, they'd be sure they're downloading MP3s. After all, the iPod isn't advertised as an AAC player, is it? They don't care what extension the file is provided it's not distorted (not to be confused with lossy - often times, you won't notice anything missing with lower bitrate versions unless you've heard the original) and it plays on their player. While I'd love to have all of my music in FLAC, few players support it (and more importantly, not mine) and the files are huge with a generally negligably boost in audio quality, and I'm not yet willing to drop a decent chunk of change to get better headphones. Plus the fact that I no longer buy CDs (partly due to availability, partly due to price and mostly because I refuse to give money to my oppressors) means that any lossless codec isn't an option for me. I don't feel *as* guilty buying from iTMS as somewhat more of the money goes to the artist, but if it were up to me (which it half-is), I'd pirate a flac version and then paypal the artist five bucks if I liked it. It's a lot more than they'd get per album regardless.

    Smart artists would do something like an oscommerce store (or whatever) where you can buy a flac/mp3 download for, say, 40 or 25 cents, two downloads allowed in case your hard drive dies and you're in the 99% of the world that sucks at backups. Cheaper for us, more profit for them, world+dog-riaa is happy.

    --
    How are sites slashdotted when nobody reads TFAs?
  15. Come out from MP3 myth and hype by Anonymous Coward · · Score: 2, Informative

    It is surprising to note digital music is only six percent of total music sales in 2005. So digital music is just starting and its a good time to come out of the hype see what professionals use.

    Everybody now days use mp3. Is that the only music format available? No. There are other music formats available which are far more superior to mp3 but not widely known yet.

    Ogg is similar to mp3, but its a completely open and free format. That is, if you want to create audio (eg. Music, podcasts, etc) create in Ogg. You are not breaking the law. The mp3 is a patented technology.

    If you are an audiophile, its shame to play mp3 in your HiFi. Consider FLAC. The FLAC is the ultimate audio format, its loose less, high definition and again completely open and free format. There are FLAC players in the market like iAUDIO X5.

    I have evaluated the Tomahawk Desktop, its Linux based multimedia OS, you can use it to convert your CDs to either Ogg or FLAC. Its amazing, its just drag and drop! To transfer to your Ogg or FLAC player, its again just drag and drop!

    Another advantage of Linux is you can play without getting hit by viruses and worms.

  16. Not so fast, I hope. by twitter · · Score: 2, Interesting
    This gradual decline in physical sales is about to reach the tipping point where the distribution model crumbles and downloads increase exponentially. ... At the store level, there just isn't sustainable profit from physical sales.

    I'm not sure the death of physical media is that close and I hope local stores never go away. Pressed CDs are a better backup than the dye based things I can burn. Cheaper physical media might change that opinion, but I will still enjoy the artifact.

    Here's a store to add to your site that I hope people will visit.

    Here's something you can visit now.

    Getting rid of centralized broadcasting and the RIAA means getting more of the above in one form or another. Excellence deserves recognition and reward. Denying those rewards is the RIAA's crime.

    I hope that small and regional music stores flourish. Without the RIAA shoveling s^H hits, a local store can still be a good way to match people to good music. Suggestion schemes can only go so far. Sometimes you need to step into something completely different. Regional music stores can also have a web presence, as noted above, and they can be an important part of local club scenes.

    --

    Friends don't help friends install M$ junk.

  17. Re:Myths about digital audio limitations by hankwang · · Score: 2, Interesting
    I was referring to your remark about 'reconstructing the signal from the beating', where you appeared to be suggesting that that is impossible. My apologies for misunderstanding you.

    Re microphones: see the specs for the Neumann U87 (a classical high-end microhone) on the manufacturer's website:

    Where do you get the idea that in the old days, microphones could handle high frequencies much better than now?

    Apart from the technology, from psychoacoustic research it is known that frequencies above 16-18 kHz contribute extremely little to the listening experience, i.e., music with the range 18-22 kHz filtered out is for most people indistinguishable in double-blind tests from music with that range included. (Although it depends on whether the sound card is resampling the signal from 44 to 48 kHz, producing aliasing along the way) At least that is the picture I get from reading on hydrogenaudio.org.