Well, it sounds like the major record labels have finally woken up and smelled the coffee! It turns out, the major labels are planning to abandon the whole CD-format by the end of 2012, or maybe even earlier, and replace it with 'downloading and streaming only' releases via iTunes, Amazon, CDBaby, and other related music services. According to some sources, the only CD-formats that will be available will be limited editions, which is the same thing they did with vinyls once they took those off the market. The limited releases won't be available for every artist, and the distribution model for these limited CD releases would be primarily handled by Amazon, which is already the biggest CD retailer worldwide.
This move makes absolute sense with the economy the way it is since CDs cost money, even when they don't sell because there is stock storage fee to be paid. For those of you who are not familiar with the other side of the music industry, a label pays money to the distributors when CDs get returned to them when they're not sold. In short, abandoning the CD-format will make it possible to just focus on the release and the marketing of the CD, and take the focus off of the distribution and expensive stock maintenance.
This move makes absolute sense with the economy the way it is since CDs cost money, even when they don't sell because there is stock storage fee to be paid. For those of you who are not familiar with the other side of the music industry, a label pays money to the distributors when CDs get returned to them when they're not sold. In short, abandoning the CD-format will make it possible to just focus on the release and the marketing of the CD, and take the focus off of the distribution and expensive stock maintenance.
The end of the CD era will almost surely mean the end for many music shops worldwide that only stock and sell CD releases. For instance, in the U.K., HMV has been having problems paying the labels already and more problems will follow making the distribution of CDs no longer worth it for them.
Amazon.com will also benefit from this format abandonment because it will surely become the one and only player when it comes to distribution of the remaining CD productions from labels. Packaged next to regular album downloads via its own Amazon MP3 service, it will offer a complimentary service.
It was only a matter of time that CDs would become obsolete in the day of MP3 players. To be honest, I can't remember the last time I actually bought a physical CD myself. What will be the next thing to go? DVDs or printed magazines? One poll said that people have been consuming much of their information online where they also read most of their news. It will be interesting to see what goes next as technology starts it's takeover!
Amazon.com will also benefit from this format abandonment because it will surely become the one and only player when it comes to distribution of the remaining CD productions from labels. Packaged next to regular album downloads via its own Amazon MP3 service, it will offer a complimentary service.
It was only a matter of time that CDs would become obsolete in the day of MP3 players. To be honest, I can't remember the last time I actually bought a physical CD myself. What will be the next thing to go? DVDs or printed magazines? One poll said that people have been consuming much of their information online where they also read most of their news. It will be interesting to see what goes next as technology starts it's takeover!
What do you guys make of all this?
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