CDs may soon go the way of vinyl

[schadeaux]

By Jeordan Legon

CNN

Wednesday, September 3, 2003 Posted: 12:02 PM EDT

(CNN) -- In the 1950s, the revolution was all about rock 'n' roll. The 70s brought punk and disco. And sometime this decade, the rebellion shifted from the music genre to the digital domain.

Signaling a new era of media distribution, Forrester Research on Tuesday released a study predicting an even bigger drop in compact disc sales as Internet music file-sharing keeps gaining ground on the flagging CD.

Twenty years after its introduction, the CD is no longer hip. From 2001 to 2002, Nielsen SoundScan estimates that 62.5 million fewer were sold -- a 9 percent drop to 649.5 million. Plummeting CD sales have forced record shops to close. And the music industry is scrambling to lift sales -- fueling the growth of new digital music services and suing hard-core file sharers.

Downloadable future

Forrester's survey of 4,782 adults and 1,170 young people finds about 20 percent of all Americans download music from the Internet. Half of the downloaders say they're buying fewer CDs. The study forecasts that in five years, about a third of music sales will come from downloads, and CD sales will drop 30 percent from their 1999 peak.

"On-demand services are the future of entertainment delivery," said Josh Bernoff, principal analyst at Forrester. "CDs, DVDs, and any other forms of physical media will become obsolete."

The survey did find some bright spots for music executives. It shows that the industry might ultimately be helped by pursuing lawsuits against heavy file sharers. More than two out of three young downloaders told Forrester they'd stop if they risked jail or a fine.

At least 10 Windows-based music services are expected to emerge in the next nine months, the report said, and by the end of 2004, downloads and on-demand subscriptions may bring in $270 million. If the trend continues, three years from now digital music sales could account for $1.4 billion of the music industry's $12.8 billion in expected revenues.

Music companies are also trying new tactics to keep CDs alive. Last year, for example, Interscope gave a DVD to the first million shoppers who took home 'The Eminem Show' CD. They're also trying out new, more expensive technologies such as the super audio CDs and DVD audio, both of which profess to offer superior sound than the plain old CD.

"The CD is turning out to be a transitory sort of item," said Roy Trakin, senior editor of Hits magazine, a California-based tipsheet covering the music business. "The future of the CD may be in its enhanced content -- in a hybrid CD DVD and the more upscale formats like DVD audio and super audio CDs."

Movies, TV take note

The report urges movie and television companies to take notice of what's happening with music. One in five young file sharers has downloaded a movie, Forrester says, and among downloaders with more than 400 files, 70 percent had at least one video file.

In the coming years, growing access to digital video on-demand in U.S. homes and the hassle of late fees and trips to the store will push many customers away from video rental shops, Forrester says. By 2007, the research group estimates that video rental revenues at Blockbuster and q-Mart will drop 37 percent. And by 2008, overall revenues from DVDs and tapes will drop 8 percent.

"Consumers have spoken -- they are tired of paying the high cost of CDs and DVDs and prefer more flexible forms of on-demand media delivery," Bernoff said.

"Piracy and its cure -- streaming and paid downloads -- will drive people to connect to entertainment, not own it," the report concludes.

CNN

[schadeaux]

I had to post this. I asked my friend a trivia question the other day.

"How many grooves does a 33 1/3 LP Record have?"

She said,"What's an LP Record?"

I told her.

She said, "It has grooves?"

I said yes.

She said, "How does it get sound from the grooves?"

I told her.

She said I was making the whole thing up.

Never did answer my first question.

I feel so old...

[Starlyte]

As one of the few who still prefer to buy the actual CD or DVD I just don't think this is going to be happening all that soon. Sure there will come a time when CD's and DVD's will be obsolete, but that would have to mean that everyone would have to have the capability to download music. Face it, some people still access the internet with dial-up modems. Also, even though DVD's have been out for a long time, you can still buy VCR's. Okay, so CD sales have gone down thanks to sites such as Kazaa, Napster, and Bearshare, it will still be a long time before downloading will be the only way to get the new songs or movies you want.

I had to post this. I asked my friend a trivia question the other day.

"How many grooves does a 33 1/3 LP Record have?"

She said,"What's an LP Record?"

I told her.

She said, "It has grooves?"

I said yes.

She said, "How does it get sound from the grooves?"

I told her.

She said I was making the whole thing up.

Never did answer my first question.

I feel so old... 

When I bought my last stereo I purposely got one with a record player so that I could have something to play my parents records on. I'm too young to have been of the generation that actually bought LP's (I'm from the cassette tape generation), but grew up listening to my parents records and like the ability to take a trip down memory lane ever so often.

[dAz]

"How many grooves does a 33 1/3 LP Record have?"

1?

dAz

[dAz]

I can't remember if I posted this here already but I guess it's kind of relevant to the subject.

EMI unveils singles strategy

04 August 2003 - 11:46:17

EMI is introducing a two-track, £1.99 single format as part of a new pricing initiative aimed at reviving the singles market.

With singles sales more than one-third down on the year, EMI Recorded Music chairman and CEO Tony Wadsworth has unveiled a unilateral plan, which will see all the major’s singles released from September 1 onwards within one of three different price bands.

The bands comprise:

a two-track issue, dealer priced to retail at £1.99;

a three-track version (with one track possibly being a DVD track), dealer priced to retail at £2.99; or

"blockbuster" releases, by the biggest-name artists, dealer priced to retail at £3.99.

The new prices will also come with a "life of title" commitment, adds Wadsworth, who says it is important that an individual single is the same price in week four as it is in week one of release.

EMI Recorded Music commercial director, sales, Mike McMahon says retailers were given first notice of the changes from the beginning of last week, with response to the initiative - which ties in with a reduction in EMI’s top-line catalogue prices - proving to be positive.

Wadsworth says that EMI is also going to examine closely its approach to airplay windows. He says, "A lot of our research seems to indicate that there is a fine line between encouraging interest in a sale and interest burning out."

The issues both of pricing and of burn-out have been raised as part of the OCC singles project, which has focused on discussion groups over the past four months.

The issue of burn-out has become a growing concern among music executives in recent weeks, particularly on pop music TV channels such as The Box and MTV Hits. Music Control monitoring data showed last week that eight tracks received 100 plays or more on The Box in the previous week; Beyoncé’s Crazy In Love was also played 109 times by The Box, 116 times on Smash Hits TV and 85 times on MTV Hits.

EMI’s move coincided with a parallel announcement last week by Beggars Group of a series of digital releases throughout August and September. The singles will include B-sides, downloadable artwork - allowing consumers to manufacture their own home-made CDs - as well as video footage, where it is available.

dAz

[schadeaux]

"How many grooves does a 33 1/3 LP Record have?"

1?

dAz

Close. 2, actually. One on each side.

[schadeaux]

When I bought my last stereo I purposely got one with a record player so that I could have something to play my parents records on.  I'm too young to have been of the generation that actually bought LP's (I'm from the cassette tape generation), but grew up listening to my parents records and like the ability to take a trip down memory lane ever so often. 

Now I feel REALLY old...

I still have a few old 8-tracks and a player that actually plays them.

Please don't ask what an 8-track is... they are probably older than your parents.

Edited September 4, 2003 by schadeaux

[Kismit]

When I bought my last stereo I purposely got one with a record player so that I could have something to play my parents records on.  I'm too young to have been of the generation that actually bought LP's (I'm from the cassette tape generation), but grew up listening to my parents records and like the ability to take a trip down memory lane ever so often.  

Now I feel REALLY old...

I still have a few old 8-tracks and a player that actually plays them.

Please don't ask what an 8-track is... they are probably older than your parents.

OMG an eight track I've never actually seen one of those upclose .......

And Starlyte I sooo have my own record collection that I brought before CD's became popular . I've got all the greats from Madonna's "like a virgin" to The Kink's " Well respected man" . Some of the best music needs to be listened to on an old record player ..

If CD's do go my advice would be to invest in first edition copies of bands like "Nirvana " there will allways be a market for good memorabillia .

[Nancy]

I had to post this.  I asked my friend a trivia question the other day. 

"How many grooves does a 33 1/3 LP Record have?"

I feel so old...

YOU feel old?? Try having a few "78's" laying around.......

[Bloated Corpse]

We still have some 45's in the garage.