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Will DRM-free tracks kill the CD once and for all?

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).

Continue reading Will DRM-free tracks kill the CD once and for all?

Record industry clinging to physical formats

According to Billboard, the Recording Industry Association of America is pushing the major labels to "discuss whether a new physical format is needed as an alternative to the CD." Although the RIAA is attempting to make sure that any new format is shared among the labels, I can't help but wonder what the point is.

I've repeatedly noted the demise of the CD and the growth of digital sales in the three months I have blogged here. Frankly, I don't think the RIAA has the labels' best interest in mind by pursuing a new format to replace the CD. That format clearly already exists in digital downloads. Why not seriously re-invest in the CD as a marketable format, rather than seeking yet another competing format?

Remember when the CD came out? People cried out about the death of vinyl. They've been crying about the death of the CD for a while now (I'm in that group), but let's face it: Digital formats are here to stay. The MP3 and other media files that can be played on pocket devices like Apple Inc.'s (NASDAQ: AAPL) iPod and cell phones are easy to access, and though the transition from CD to digital file is slower than the switch from vinyl to CD was, it is still occurring (imagine what the iPhone may do to this situation). None of this counts to satellite radio subscribers who need neither a CD nor a portable player because their radio receiver is portable (this may be a generalization -- the few people I know that have XM or Sirius have stopped purchasing CDs and don't own MP3 players).

If the RIAA is worried about the compact disc, a new physical format is not the answer. Any new format will face the same competition with digital files that the CD is facing now. Either re-invest and change the CD or make the transition to digital files smoother.

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Last updated: May 28, 2012: 06:16 AM

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