At the NARM website there is a PDF of NPD Group's "NARM 2008 Physical Products Concept Test," the presentation given at last week's NARM conference in San Francisco. The study presented seven product concepts to about 1,400 respondents aged 13 and over. NPD argues there is no replacement for the CD -- which it insists still has life -- and alternative physical formats like digital album cards, CDVU and USB drives can find some success in niches.

The content page (slide 5) surprised me a bit. Lyrics are especially important to older consumers while younger consumers said bonus content was most important. Environmentally friendly packaging was the third most important product feature.

The CDVU format (slide 7) tested well with heavy physical buyers (which makes sense) and was the highest format next to the CD. Likely CDVU buyers are willing to pay the price of a CD. According to the survey, at $12 an equal number of respondents said the CDVU was both too expensive and too cheap.

The DFS updatable CD with Internet access to bonus content scored well with 18-24 segment. The MFA enhanced CD with bonus content (slide 13) was liked for the bonus content but was seen as a high-cost option for getting that content. The MVI format (slide 15) scored best with the 13-17 age segment. The digital album card (slide 17) received lukewarm response, had the strongest appeal to heavy digital buyers and was liked for gifting purposes. Interestingly, the digital album card's bonus content received a more positive response than its open format (slide 20).

The USB drive (slide 24) does not appeal to core digital buyers but has a broad appeal (for different reasons) and a higher acceptable price range.

As I wrote yesterday, the CD is not dead. Physical formats are not dead. Just as with digital products, what is needed for new physical products is some tinkering, creativity and persistence. Some respect for the consumer would be nice, too, and I assume that post-Sony BMG root kit that won't be a problem.

[music jobs] Director of Content at Dada Entertainment; New York, NY.