Ditch the CD by Christmas 2009, Gartner tells music industry
Could this Christmas really be the swansong of the CD? Analyst Gartner certainly hopes so, having issued a challenge to the music industry to move to a ‘digital first’ strategy by the end of next year, in order to stop being held back by its reliance on CD revenues. Or, as Gartner’s research VP Mike McGuire puts it:
“By propping up the CD business, rather than fully investing in online distribution alternatives, the major labels and the larger music industry have neither succeeded in stamping out piracy nor done much to recreate the business models of the old ‘record business,’. Music labels should instead emphasize ‘digital first,’ making all new releases and catalog issues via digital services and moving CDs to an on-demand publishing mode.”
Gartner backs up its claim by saying that physical music revenues went from 91% of overall sales in 2005 to 77% in 2007, while pointing out that by 2012, 77% of US households are expected to have broadband internet. The analyst appears to be suggesting that the remaining 23% will either get their CD’s burned on-demand, or will buy their music through Wi-Fi laptops and 3G mobile phones.
Here’s McGuire again: “The industry’s comfort with past marketing and promotional practices centered on CD launches is ingrained and difficult to give up. But the reality is that digital natives and immigrants are more interested in convenience and choice. This is not to say that the physical CD would disappear altogether. Rather, it could shift to being a promotional tool to be sold or given away at concerts for example.”
Tsk, shouldn’t that be on USB sticks?
Anyway, Gartner has a report out – Christmas 2008: The Last Year of the Retail CD – which has more details on its suggestions.
Tags: gartner
December 24th, 2008 at 4:28 am
[...] Research is advising the music industry that by Chrismas 2009, they should be embracing a “digital first” approach to music [...]
December 24th, 2008 at 1:12 pm
I’m all for online delivery. I’ve started buying this way in the last couple of months – and the ’sample before buying’ feature and ‘buy only what you want’ make it very attractive, on top of the lower cost. But it’s no good solely supplying it in MP3 format. Listening on the PC or iPod is OK, but played back through a good system and the level of compression – of all kinds of music, not just orchestral but the latest Elbow album for instance – is wholly unacceptable: Rattle’s Mahler Symphony No 9 was initially retailed in this way before physical release – but what was the point? I know a lot of consumers don’t care, but we can’t have superior quality eliminated from the market place just for the sake of convenience and profit.
December 25th, 2008 at 3:12 pm
[...] Research is advising the music industry that by Chrismas 2009, they should be embracing a “digital first” approach to music [...]
January 31st, 2009 at 8:43 pm
[...] Change however, must come: Tech Analyst Gartner predicted that Christmas 2009 will be music-CD free. [...]
February 22nd, 2009 at 9:17 pm
Gustav Mahler is the greatest composer I have ever heard. He inspires me every day of my life.
November 20th, 2009 at 4:36 am
Thanks for making this information available. Here’s my list of christmas classical songs