Goodbye to CDs

[RichKid]

Thought this might be of interest, another major shift in shopping due to technology:

Number's just about up for CDs: retailer

By Christine Sams
SMH February 19, 2006


THREE of Australia's leading music stores will shift away from CDs towards digital retailing, in plans forged by Australia's most powerful music retailing boss.

Brett Blundy, the director of Brazin - the company that runs HMV, Sanity and Virgin record stores in Australia - has indicated digital technology unveiled for his Sanity stores will eventually be available in all his other major retail chains.

"That's the plan," said Mr Blundy. "It's very exciting."

The reclusive retail boss, who rarely speaks about his domination of the music industry, appeared at a Sanity launch last week to unveil the company's new Fast Tracks Kiosks, which allow customers to buy single tracks for download on either CDs or MP3 players.

It's the first time music customers will be able to select and download individual tracks and choose the format on which they buy it. Some customers may choose to make a compilation CD, others can plug their MP3 players into the machine and download songs directly, removing the need to use a home computer.

Fast Tracks Kiosks - which contain about 100,000 tracks for download per machine - will also be introduced in all of Brazin's regional stores.

"We've basically said that wherever there's a Sanity, HMV or Virgin store we'll have at least four machines in them - the smaller stores may have two - but that's within the next 12 months," said Greg Milne, CEO of Brazin.

As part of its digital revolution, Sanity will also sell mobile phone ring tones over the counter, making it the first "bricks and mortar" store in the world to do so. The service is also likely to be expanded to HMV and Virgin stores.

Mr Milne said while the CD was not dead yet, customer awareness of digital music is growing, and in a few years the CD may be almost irrelevant.

"As customers start to update their hardware, when they don't have a CD player in their home, and want everything on a memory stick or in digitised format, we'll be able to accommodate that," he said. "It's really a transitional thing at the moment."

Mr Milne acknowledged that many music fans might not be aware Brazin operates so-called "rival" record stores including HMV, Virgin and Sanity. "We own them all," said Mr Milne. "If we didn't think it was a good idea, we wouldn't have done it."

But he said many music fans would benefit from the retail shift towards new technologies.
CV of the CD


 Introduced in 1984, compact discs boosted an industry that was considered to be static.

 By 1994 CDs were easily out-selling vinyl albums: 25 million CD sales in Australia compared with 28,000 albums.

 By 2004 Australian CD sales totalled 48 million.

 The introduction of the Apple iPod in 2004 allowed downloading of music from the internet and CDs on to a portable MP3 player. CD prices were reduced in an attempt to keep customers buying music from record stores.

 In the first half of 2005, music sales declined 7 per cent as MP3 players took hold.

 

[Smurf1976]

Re: Good bye to CD's

The key thing about buying music digitally is that you don't need a "bricks and mortar" store at all.

I see this as an attempt at survival by the music retailing business rather than a true innovation itself. If it's going to be completely digital then there's no reason not to just download it via the internet. Indeed that's the way the industry is already going.

I just can't see costly stores full of nothing but download terminals when most of the customers have effectively the same facilities at home. Even a dialup connection will suffice if the computer is left running overnight and with broadband etc it's easy.

This whole idea of doing the downloading in stores sounds a bit pointless IMO. How can it possibly compete on economic grounds given the cost of the store, security staff (won't really need many other staff - what would they do?) etc. PC's are getting cheaper as are internet connections.

It would make more sense for the whole industry to make buying physical CD's more attractive rather than push the download route IMO. Like cinemas fought back against video, gas against electricity etc. Both of those industries were in serious trouble at one stage but did very well through giving people a valid reason to come back. Indeed there are more cinemas in many places now than before anyone had heard the words "Beta" or "VHS". And gas use is likewise at an all-time high.

So IMO either give people a reason to stick with buying physical items in the stores or give up and find something else to sell. Putting some decent artwork on the CD covers would be a start, as would dumping the old "2 hits and 10 tracks of filler" formula which naturally discourages most from wanting the full album in the first place.

 

[Duckman#72]

Re: Good bye to CD's

The key thing about buying music digitally is that you don't need a "bricks and mortar" store at all.

I see this as an attempt at survival by the music retailing business rather than a true innovation itself. If it's going to be completely digital then there's no reason not to just download it via the internet. Indeed that's the way the industry is already going.

So IMO either give people a reason to stick with buying physical items in the stores or give up and find something else to sell. Putting some decent artwork on the CD covers would be a start, as would dumping the old "2 hits and 10 tracks of filler" formula which naturally discourages most from wanting the full album in the first place.

I totally agree Smurf. I think Brazin are kidding themselves. How is this going to be profitable?

Have you noticed how, over the past 5 years the DVD sections of Sanity and HMV have more than doubled and the CD sections have shrunk? Looks like their ideal shop may have 90% DVD's and 4 music download booths.

There was an article in The Bulletin titled "The CD Bytes Back" this week concerning - a Dual Disk. One side is a DVD of the artist includin filmclip and interview the other side is the album in a CD/SACD format, playable in regular or "enhanced" stereo or in 5.1 surround sound.

But like you say - if the album has only 2 good songs and 8 fillers why would you want to listen to it in surround sound!!!

If the music industry was less interested in marketing the latest piece of teenage, fan-crazy crap and poured money into talented artists they would at least have a solid foundation to build from. But they lurch from sexy newcomer to sexy newcomer - milking as much money as they can before dropping the empty shell and locating their next cash cow. (But don't get me wrong - I'm not complaining aboingt the sexy part!!!)

Duckman

 

[Mumbank]

Re: Good bye to CD's

Now what will we use as "stocking fillers" for the teenagers !!!!

 

[mista200]

Re: Good bye to CD's

Put it this way, there is no need to pay when you can download for free. And there no no need to pay for download because there will always be a program which you can download that will have practically any track you want for free anyway!

 

[Smurf1976]

Re: Good bye to CD's

If the music industry was less interested in marketing the latest piece of teenage, fan-crazy crap and poured money into talented artists they would at least have a solid foundation to build from. But they lurch from sexy newcomer to sexy newcomer - milking as much money as they can before dropping the empty shell and locating their next cash cow. (But don't get me wrong - I'm not complaining aboingt the sexy part!!!)

Duckman

Most people would be surprised by just how many big name artists are dumped by the industry simply because their 5 album deal is up. It happens more often than not especially where pop music is concerned. Someone who is actually successful is replaced by another newbie, most of whom fail.