With EMI Group PLC (LSE: EMI)'s announcement Friday that its new Digital Rights Management technology-free tracks now available for sale on Apple Inc. (NASDAQ: AAPL)'s iTunes Store are performing well, will the compact disc finally go to the grave, as has been speculated for the past few years? Coolfer, a music industry site, notes that this may be one explanation, but can this truly be the case? Certainly the quick growth of DRM-free tracks is impressive, but is it long-term or simply a new service that consumers have embraced quickly and will cool?
For this listener, the differences in DRM-free tracks, "regular" iTunes tracks, and CD tracks are indiscernible, so the advantages between $1.29 iTunes Plus tracks versus CDs are nil. It is my belief, and this is strictly from someone who cannot let go of physical albums, that the curiosity with DRM-tracks has led to slight CD sales drops for specific EMI albums but these will not be permanent. After all, this new service is just another in a long line of "new services" that has challenged CD sales, and the CD is still with us. No, it is not in the same position it may have been 10 to 12 years ago, but it refused to die, or rather we refuse to truly kill it.
I am of the opinion that digital sales will eventually destroy prominent CD sales, but as long as the audio CD is manufactured, someone will purchase it. Even so, the CD as a tool, not simply as a device to hold music, will survive. After all, it is not always advantageous or simple to play music in a car from an iPod or other mp3 device. The transmitters to transfer the iPod signal to car radios exist, but the CD player still often comes "standard" in so many cars (I have a base-model car and it came with a CD player, so I'm using that as my example).
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