CD Format to be abandoned by 2013...

User avatar
JAMEZ!
Posts: 1435
Joined: Mon Mar 09, 2009 9:29 pm
Location: Nottingham, England

CD Format to be abandoned by 2013...

Postby JAMEZ! » Fri Nov 04, 2011 12:35 pm

http://www.side-line.com/news_comments.php?id=46980_0_2_0_C

The major labels plan to abandon the CD-format by the end of 2012 (or even earlier) and replace it with download/stream only releases via iTunes and related music services. The only CD-formats that will be left over will be the limited edition ones, which will of course not be available for every artist. The distribution model for these remaining CD releases would be primarily Amazon which is already the biggest CD retailer worldwide anyhow.


Thoughts?
Image

Ross
Posts: 2792
Joined: Sun Jan 10, 2010 11:24 pm
Location: Chessington

Re: CD Format to be abandoned by 2013...

Postby Ross » Fri Nov 04, 2011 12:44 pm

Bad idea. Whilst CD's may not sell anywhere near as well as they used to, some people like to buy them to say they physically own the CD's. Plus what about people that don't have internet (i know thats a very minimal amount of people these days).
:animals-cow:

User avatar
ThornDavis
Posts: 1351
Joined: Fri Mar 11, 2011 1:44 pm
Location: Oxford

Re: CD Format to be abandoned by 2013...

Postby ThornDavis » Fri Nov 04, 2011 1:41 pm

Seems unlikely given that the CD market is still worth more than the download market. I think the balance is predicted to tip in favour of digital downloads by the end of 2012. That means that in the timescale predicted by this article (which quotes no figures or sources beyond it's own editor's prediction), major labels will abandon a revenue channel worth about $2.5bn dollars. Why would any business do that?

The article also misses a few key points about the benefits of the CD model to a label. This sentence:

"It's a move that makes completely sense. CD's cost money, even when they don't sell because there is stock storage to be paid; a label also pays money to distributors when CDs get returned to the labels when not sold and so on"

isn't solely frustrating for being a graveyard of English grammar. It also ignores key factors in the way a modern business operates. Yes, you have to pay storage on unsold CDs, but a good sales manager will keep a close eye on stock and demand. It's not the massive drain on resources presented here, and modern printing and shipping facilities mean that the just-in-time approach of stock management is the norm. More importantly, what you get with CDs that you don't get with downloads is a whopping dollop of cash right at front. When a record label sells 40,000 CDs to Amazon's warehouses, that's a massive injection of cash right up front that immediately goes towards covering the costs of creating the album. Great! Now you can pay all your suppliers and staff! What you get with digital, is that money coming in in drips and drabs over the course of several months. Alot of people overlook the effect that digital distribution has on a company's cash flow, but for many businesses, that can make the difference between going under and continuing to operate.

"In short, abandoning the CD-format will make it possible to just focus on the release and the marketing of it"

What the writer mis-understands here is that the work you do with record stores IS the marketing of it. If labels abandon physical sales, they miss out on a big opportunity to create visibility. CD sales will probably continue even afte they start losing money (which at circa $3bn a year, they ain't doing yet), just because a store front or shelf display is such great visibility. When a major album comes out, they're all over HMV, and that's a great boost for CD sales and itunes. Without that, you lose out on an uncommonly cost-effective marketing channel that talks directly to your core audience. If someone can come up with a way to replace that level of marketing firepower, then they can talk about the death of the CD, and also get a job as marketing director at EMI.

User avatar
ANXIETY
Posts: 12879
Joined: Sat Apr 25, 2009 10:35 pm
Location: Isle of Sheppey, Kent

Re: CD Format to be abandoned by 2013...

Postby ANXIETY » Fri Nov 04, 2011 1:46 pm

Bye bye HMV and the likes.
Image
FMC code:1k932434 Use it ;)

User avatar
HarvesterofSorrow
Posts: 344
Joined: Wed Dec 22, 2010 3:36 pm

Re: CD Format to be abandoned by 2013...

Postby HarvesterofSorrow » Fri Nov 04, 2011 2:18 pm

I personally do not like it. I like owning the release itself and having a physical copy. I like the artwork and the lyrics and liner notes. I don't want to go digital. I enjoy collecting the music physically. I enjoy going to music stores and perusing through the different CD's. It is part of the enjoyment of music to me. I remember as a kid going to the record stores and buying vinyl records with friends, and then going back home and putting the records on.

On a side note, I did not want to make the jump from vinyl/cassette to CD back then. :lol: Hell, I still own all my vinyl's and collect them to this day still.
2011 - 05 May Iron Maiden (Frankfurt, Germany), 18 June Roger Waters The Wall Live (Duesseldorf, Germany), 2 July - Metallica, Slayer, Megadeth, Anthrax (Gelsenkirchen, Germany), 8-9 July Sonisphere France (Amneville)

User avatar
McMenemy
Posts: 1944
Joined: Tue Mar 10, 2009 6:19 pm

Re: CD Format to be abandoned by 2013...

Postby McMenemy » Sun Nov 06, 2011 11:31 pm

I can see them trying it but ultimately have it fail, and have CD's return to the shelf.

hybrid theorist
Posts: 15851
Joined: Thu Mar 12, 2009 9:37 pm
Location: Leeds, YORKSHIRE

Re: CD Format to be abandoned by 2013...

Postby hybrid theorist » Tue Nov 15, 2011 8:30 am

My friend doesn't have the internet. Record companies aren't going to cut him off 100% are they? Web access is fast becoming a necessity in the same way a tv signal is, but its not there yet. Until your grandma is comfortable buying things over the internet, this idea won't happen.

Hmvs days are numbered, I think everyone knows that, but they're not going just yet
Image
:animals-cow:

User avatar
Grables
Posts: 2670
Joined: Tue Mar 10, 2009 8:21 pm
Location: Hove, Brighton.
Contact:

Re: CD Format to be abandoned by 2013...

Postby Grables » Mon Nov 21, 2011 4:43 pm

I don't have a TV signal in my house.. not a necessity. Why would I pay for that garbage? (not that I would have time to watch it anyway)

I don't like the idea of loosing CD's. I may not buy them as much as I should, but I think a physical format, as well as physical artwork is still an important part of the music industry - even if the recording sector of the industry has gone to gooseberry.
Image

User avatar
ThornDavis
Posts: 1351
Joined: Fri Mar 11, 2011 1:44 pm
Location: Oxford

Re: CD Format to be abandoned by 2013...

Postby ThornDavis » Tue Nov 22, 2011 12:33 pm

Grables wrote:I don't have a TV signal in my house.. not a necessity. Why would I pay for that garbage?


Same here. Ditching broadcast TV is an easy way to save over £100 a year.

Given that CD sales are still worth more than digital, I don't really forsee it being abandoned in the near future.

User avatar
triaxis
Posts: 7264
Joined: Sun Mar 08, 2009 11:49 am
Location: Forest of Dean
Contact:

Re: CD Format to be abandoned by 2013...

Postby triaxis » Sat Nov 26, 2011 11:46 am

Ross wrote:Bad idea. Whilst CD's may not sell anywhere near as well as they used to, some people like to buy them to say they physically own the CD's. Plus what about people that don't have internet (i know thats a very minimal amount of people these days).


Agree with this - having said that I haven't bought a CD for months - got a nice long list
Image
FMC CODE: 1k925379
corney91 wrote:
Cazzy wrote:I'm thinking: Triaxis is a legend! :bow-yellow:

Ditts :lol:

THEY ARE THE PANZER ELITE! BORN TO COMPETE! NEVER RETREAT! GHOST DIVISION!

User avatar
McMenemy
Posts: 1944
Joined: Tue Mar 10, 2009 6:19 pm

Re: CD Format to be abandoned by 2013...

Postby McMenemy » Tue Nov 29, 2011 10:43 pm

Wish I could say that. I think the last five months I've averaged 8 new CD's a month :lol:

User avatar
houston404
Posts: 5213
Joined: Sat May 14, 2011 10:36 pm

Re: CD Format to be abandoned by 2013...

Postby houston404 » Wed Dec 07, 2011 8:25 pm

It's going to be like vinyl all over again, goes into tempoary decline then makes a resurgence.
However while HMV lose out people like Apple and Amazon will be loving it as now their products will become a near necessity to listen to music. So the price of a download or a music player will go up :roll:
I think the cd market will continue just at a lower level than before (the balance between DL and cd will shift)
Oh joy another game of truth or troll
Your/You're, it's all the same to me

ThemBones
Posts: 1
Joined: Fri Apr 06, 2012 7:55 pm

Re: CD Format to be abandoned by 2013...

Postby ThemBones » Fri Apr 06, 2012 10:04 pm

There will probably still be a collectors market for CDs, I don't think it will ever be something that will totally be abandoned. Vinyl has made a bit of a resurgence in recent years so why not the same for CDs

I still love em :D

Surely it would take years to properly phase them out???

User avatar
metalicbear
Posts: 5372
Joined: Mon Mar 09, 2009 6:22 pm
Location: Lincolnshire

Re: CD Format to be abandoned by 2013...

Postby metalicbear » Thu Aug 30, 2012 5:24 pm

ANXIETY wrote:Bye bye HMV and the likes.


Not strictly true. If HMV are smart and act fast, they could easily adapt to the market.

Take garage's for example, when electricity take's over that market and petrol vehicles become defunct, is that the end of garage's?...no, they will remove the petrol pumps and replace them with charging stations, whilst having an exchange for dead batteries.

The same approach could be taken by HMV, such as having a few stations around the shop with direct download capabilities, straight to ipods and such like, so you could have new music to listen to on the move, they could also adopt charging stations as well in store. They could still sell a small amount of cd's and vinyl as well as the other stuff they sell.
FMC Code - 1k949287

User avatar
PurpleDemon
Posts: 4779
Joined: Wed Dec 08, 2010 6:24 pm
Location: Hatfield
Contact:

Re: CD Format to be abandoned by 2013...

Postby PurpleDemon » Thu Aug 30, 2012 6:01 pm

i wonder when Record Store Day will become CD Store Day.
Image

Not removing this from my signature until:

Sonisphere UK 2013 is confirmed: [WELP.]
Headliner announcements made: [NOPE.]
Alter Bridge booked: [NADA.]
Arcane Roots booked: [NEVER.]
Outkast booked: [HAHA, NO.]

muse2012
Posts: 1892
Joined: Tue Sep 06, 2011 7:17 pm
Location: Corby, Northamptonshire

Re: CD Format to be abandoned by 2013...

Postby muse2012 » Thu Aug 30, 2012 9:19 pm

If the CD format died my massive collections of CD's cannot be widened hence meaning sweet f*ck all :(

User avatar
ThornDavis
Posts: 1351
Joined: Fri Mar 11, 2011 1:44 pm
Location: Oxford

Re: CD Format to be abandoned by 2013...

Postby ThornDavis » Sun Sep 30, 2012 7:04 am

Well, there's now only three months to go until 2013. I think it's safe to say there's no danger of the CD format being abandoned before Christmas.

muse2012
Posts: 1892
Joined: Tue Sep 06, 2011 7:17 pm
Location: Corby, Northamptonshire

Re: CD Format to be abandoned by 2013...

Postby muse2012 » Sun Sep 30, 2012 9:31 am

Yeah well I'm sure its going to quite a while until we see thee CD format abandoned if at all.


Return to “Single, Albums and Other Recordings”