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June 7, 2007

Tony Sachs has an thoughtful piece on the health of the CD over at The Huffington Post. We're all in agreement that the traditional CD store is on its way out. (I'll add a caveat: CD stores that serve a niche or are tuned into their communities will survive.) But is the CD dead, as has been written so many times? Sachs is waiting to see Paul McCartney's sales.

"It'll be interesting to see what kind of numbers Memory Almost Full does in its first week, especially in Starbucks. Because if they can sell a $15.99 CD that can be found in almost any other store for a lot less, then the presumption that the CD is on its last legs will have to be re-thought.

The CD is far from dead. It may not have a clean bill of health, but still accounts for more than 80 percent of music sales. Rather, what's dead is the CD store. And that's a whole 'nuther story. Just because people don't want to go to a store that only sells music doesn't mean they don't want to buy music while also getting a mochaccino from Starbucks, or a flat screen TV from Best Buy, or some ammo from Wal-Mart."

Even though CD sales are down 25% this year, CD sales still represent 80% of all album sales. When one format represents four out of five albums sold, that format is said to be relatively healthy. (All this "CD is dead" statements make far better predictions than actual proclamations.) The key word there is relative. Digital gets all the attention -- Steve Jobs doesn't sell CDs, after all -- but it's still the puny little brother to the more mature CD. Of course, digital albums are going through a growth spurt -- they're up about 58% this year -- and the CD has osteoporosis...but the CD is still whoopin' the digital album's butt.

As Sachs points out, the old way of selling CDs is a real problem. As labels find new ways to sell an old product, we may find a bit of life left in the shiny round disc.

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Posted by Glenn at 10:23 PM | |

New York University is seeking a Department Chair for The Clive Davis Department of Recorded Music.