Upon reading that Apple is working with auto manufacturers to integrate the iPod into new models, I thought of how this would impact thefts. You see, insurance companies constantly replace CDs that are stolen from automobiles (and homes, which can amount to a lot of CDs). If fewer people keep CDs laying around inside their cars, insurance companies will place fewer orders with wholesale distributors to replace the lost CDs.

The loss to the industry is hard to determine. It may be so slight that it's close to immaterial, but this is just another example of how digital music will lead to a contraction of the physical market.

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