2012 might be doomsday for Compact Discs (CD) as digital music takes over

According to various reports, major music CD pressing companies are planning to discard the manufacturing of compact discs by the end of 2012 because of the slump in the CD business.

Main reason for such a downfall in the CD music business is the shift of buyer’s concentration toward the digital music through internet. According to the reports, over 60 percent of the music in the household is downloaded through internet, especially through
iTunes.

Apple’s invention of iPod to support Steve Jobs’ vision of digital music as ‘the next big thing’ has taken its toll on the CD business and the CD sales are in a freefall of late. However, it is farfetched whether these CD manufacturers will abandon the business
or not.

At the moment, if the CD music industry is not in the top flight as it was in the late 90s or early 2000s, it is not in loss either but it is speculated in the certain circles of music industry that the end of 2012 will not see the aforesaid business running
its operations anymore.

However, the current statistics suggest that the CD industry, which already has bid goodbyes to the motion picture industry out the door after the advent of digital versatile discs (DVDs) and Blu-Ray discs, will not experience a sudden cardiac arrest in
the music sector. However, it will see a slow and ‘graceful’ death in the first half of next decade.

Until 2015 the CD business will be in the driving seat as most parts of the world are still oblivious of the online subscription and download of music; and car stereos, one of the major sources of income for the music industry, are still dependant on the
CDs.

The iTunes, on the other hand, has been one of the major factors in the uplift of online digital music. In 2010, over 90 percent of digital music was downloaded through iTunes, which accumulates to over 50 percent of overall music business.

Even if the digital music foresees a great quest ahead of it, the CDs will certainly enjoy almost a $10 Billion business (because of its expensive prices) before it is scratch of the portfolios. The digital music will be trailing its tail by 2015 accounting
of a $7.7 Billion (because of cheap price tags) worth of chunk in the revenues.

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Posted by Usman Khalid on Nov 10 2011. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry