You read it well. The major labels plan to abandon the CD-format by the end of 2012 (or even earlier) and replace it with download/stream only releases via iTunes and related music services. The only CD-formats that will be left over will be the limited edition ones, which will of course not be available for every artist. The distribution model for these remaining CD releases would be primarily Amazon which is already the biggest CD retailer worldwide anyhow.

3 weeks ago we heard it for the first time and since then we have tried getting some feedback from EMI, Universal and Sony. All declined to comment.

The news doesn't come as a surprise to those who have been working in the business. In a piece that was published in a q&a with the Alfa Matrix people back in June 2011 in the 1st issue of "Matrix Revelations", our chief editor Bernard Van Isacker said the following when asked if a CD would still exist in 5 years: "Yes, but in a different format. Normal CDs will no longer be available because they don't offer enough value, limited editions on the other hand will remain available and in demand for quite a few more years. I for one buy only limited editions because of the added value they offer: a nice design, extra bonus gadgets, etc. The album as we know it now however will be dead within 5 years, if it isn't even sooner. I predict that downloads will have replaced the CD album within the next 2 years. I don't see that as something negative, it just has run its course, let's leave the space to limited editions (including vinyl runs for bigger acts) and downloads instead."

It's a move that makes completely sense. CD's cost money, even when they don't sell because there is stock storage to be paid; a label also pays money to distributors when CDs get returned to the labels when not sold and so on. In short, abandoning the CD-format will make it possible to just focus on the release and the marketing of it and no longer focus on the distribution (since aggregators will do the work as far as dispatching the releases to services worldwide) and - expensive - stock maintenance. In the long run it will most surely mean the end for many music shops worldwide that only stock and sell CD releases. In the UK for instance HMV has problems paying the labels already and more will follow. It makes the distribution of CDs no longer worth it.

Also Amazon will benefit from this as it will surely become the one and only player when it comes to distribution of the remaining CD productions from labels. Packaged next to regular album downloads via its own Amazon MP3 service it will offer a complimentary service.

The next monument to fall? That will be printed magazines as people will want to consume their information online where they also read most of the news.

What are your feelings? is it a move that you like or not?


Read more at ONTD:http://ohnotheydidnt.live...z1cOHn3luD

If true, I'm done buying music. I don't care 4 downloads regardless of the quality.

I don't believe it

YEAH RIGHT.

Wed Oct 26, 08:58 PM

Why the CD isn't going the way of the dinosaur... yet
CTVNews.ca Staff

A customer inspects a used CD of Michael Jackson's 'Thriller' that she purchased at a used CD and record store in Berkeley, Calif., June 26, 2009. (AP / Paul Sakuma)

The compact disc isn't going the way of the dinosaur anytime soon, according to self-described "professional music geek" Alan Cross.

The host of the Ongoing History of New Music told CTV News Channel on Wednesday he disagrees with an article in Side Line Music Magazine which suggests the major labels plan to abandon the format by the end of 2012 at the latest.

Cross, who acknowledges the CD's life expectancy is limited, shared five reasons why it will stick around at least for a little while yet.

Cash is king: First and foremost, CDs are still generating revenue for the record companies. Yes, the revenue stream from compact discs has declined in recent years as many users have switched to downloaded versions of their favourite albums, but one million album hard copies are still sold each week in the U.S.

"Some people just like holding something in their hands," Cross told CTV News Channel.

Retailer relations: If record companies stop producing shippable versions of their artists' offerings, they will effectively cripple the stores that sell those products and thereby damage important and longstanding business relationships. From big box retailers like Wal-Mart to independent record stores, the retailers play a vital role in getting product into the hands of fans whose computer skills may not be up to speed.


"I just can't see them saying 'sorry guys, after 100 years of selling products for us, we're not going to do that anymore,'" Cross said.


Old-school tendencies: The population of music fans who don't, and won't, purchase their music over the Internet is massive. Eliminating CDs would mean eliminating a massive segment of the market -- not something music companies are likely to do any time soon.


"The parents who have a VCR whose clock is still flashing 12 o'clock, this is the group we're talking about," Cross said. "Get my dad on the computer and working iTunes and downloading things to an MP3 player and plugging it into his car? I don't think so, that isn't going to happen."


Cruising tunes: People still listen to music in their cars while driving. It's a fact. Most car stereos still don't accept a USB port or an MP3 jack, and thus, people still proudly display their CD cases on their sun visors. Those people represent important dollar signs for the record companies, Cross said.


Swag: Vinyl might be the medium of choice for indie bands and their hipster fans, but it's expensive to produce and therefore CDs are more often the go-to choice. And those bands can still make money from selling CDs at concerts and through their websites -- an important revenue stream for struggling groups trying to put gasoline in the tank of the tour van.


"It will cost you $4 or $5 to make a CD and you can sell it for $10 or $15. If you sell 1,000 a month off the stage at your gigs that's getting pretty close to a decent revenue stream," Cross said.

[Edited 10/31/11 13:04pm]

if it's true () it will be a slow, very slow process

you just cannot say "no more cds in 2012" and then make them disappear

that's just BS

but if it happens in 8-12 years, it will surely mean the end of music shops, and I mean THE E-N-D

[Edited 10/31/11 13:05pm]

JoeTyler said:

if it's true () it will be a slow, very slow process

you just cannot say "no more cds in 2012" and then make them disappear

that's just BS

but if it happens in 8-12 years, it will surely mean the end of music shops, and I mean THE E-N-D

[Edited 10/31/11 13:05pm]

The CD won't end next year. No way. I don't think it's impossible that it will end in 8-12 years if at all. The article doesn't seem accurate at all.

I love buying albums.. there's nothing like having a physical copy.

babybugz said:

I love buying albums.. there's nothing like having a physical copy.

specially for veteran artists

remember the excitement behind the Beatles 09/09/09 ???

I don't know why anyone would believe that story. Album sales may not be what they were 20 years ago but it's still valuable to promote music. Side Line Music, I never heard of that magazine.

babybugz said:

I love buying albums.. there's nothing like having a physical copy.

That's why I don't think it will stop. Look how happy people get when they buy albums.

Oh no wonder why this didn't make a lot of news:

http://en.wikipedia.org/wiki/Side-Line

http://www.side-line.com

Really, Side Line? Really?

I hate the move. Yes, I understand how CDs are dated, and I know that I can still burn my digital files to CD for backup if I want to. But, I still like having CDs as tangible property. Further, I think many, many MP3 files are horrible sound quality, and with CDs, at least you always had the option for better sound quality.

I think death penalty for illegal downloaders would help put off the end of CDs

But we all got to ask ourselves: how is it true? And if it's true why has that site been failing to contact with the major labels they say are "abandoning the CD-format"? Seems like if you tell tales today, people are inclined to believe it just like people believed Justin Bieber would go to jail for posting videos of singing someone else's songs on YouTube...lol

PANDURITO said:

I think death penalty for illegal downloaders would help put off the end of CDs

No they need to bring back the music stores. That would end it.

No :*(

I better replace some my good scratched ones then before it's too late. But this is outrageous! I don't like buying CD downloads, I went through hell doing it one time and went back to free downloading or buying CD's of the ones I support the most.

I'm more worried about people who believe the article than the article itself.

I really hope it's not true, otherwise I would be sad and pissed as hell.

xLiberiangirl said:

I really hope it's not true, otherwise I would be sad and pissed as hell.

It comes from an online publication. You can say ANYTHING online. It reads like a post I would read HERE when someone would preach about the end of the music industry lol

Timmy84 said:

xLiberiangirl said:

I really hope it's not true, otherwise I would be sad and pissed as hell.

It comes from an online publication. You can say ANYTHING online. It reads like a post I would read HERE when someone would preach about the end of the music industry lol

I don't read it anywhere else so far, so.. tbh; why should they stop making cd's? they still making money on cd's right? but not like it used to be anymore. I really don't believe that it costs 4 or 5 dollars to make a cd... no way.

Timmy84 said:

PANDURITO said:

I think death penalty for illegal downloaders would help put off the end of CDs

No they need to bring back the music stores. That would end it.

Ugh I remember this store near where I live that had all the albums and vintage stuff I could stay in there for hours smh. It's been gone for a while now they should really bring these stores back because the interest is still there.

xLiberiangirl said:

Timmy84 said:

It comes from an online publication. You can say ANYTHING online. It reads like a post I would read HERE when someone would preach about the end of the music industry lol

I don't read it anywhere else so far, so.. tbh; why should they stop making cd's? they still making money on cd's right? but not like it used to be anymore. I really don't believe that it costs 4 or 5 dollars to make a cd... no way.

lol yeah that might just be a number... I'm thinking this would be good news for those who are nerds. They'll brag about owning music inside USB ports.

babybugz said:

Timmy84 said:

No they need to bring back the music stores. That would end it.

Ugh I remember this store near where I live that had all the albums and vintage stuff I could stay in there for hours smh. It's been gone for a while now they should really bring these stores back because the interest is still there.

I agree. People still want to go to a music store. I think that's the problem all along because once they did that, that gave people more INCENTIVE to download for free. Besides the labels would look more stupid if they did this anyway. I know they're stupid in general but stupid enough to stop distributing something after 25 years? NAH! Besides, albums still sell 4-5 million today. Adele should be a reason why CD's won't end lol same with Taylor Swift and some other people.

I also believed that this report is pure speculation. It's like saying "oh the world will end in six hours" and then saying "we tried to contact a scientist who allegedly confirmed this."

You see how dumb that is?

[Edited 10/31/11 14:04pm]

Don't buy it.

I spend more money at Cheapo than I do on food or clothes, that's for sure.

RKJCNE said:

Don't buy it.

I spend more money at Cheapo than I do on food or clothes, that's for sure.

Exactly. Don't believe the hype.

That would upset me as well.

babybugz said:

You read it well. The major labels plan to abandon the CD-format by the end of 2012 (or even earlier) and replace it with download/stream only releases via iTunes and related music services. The only CD-formats that will be left over will be the limited edition ones, which will of course not be available for every artist. The distribution model for these remaining CD releases would be primarily Amazon which is already the biggest CD retailer worldwide anyhow.

3 weeks ago we heard it for the first time and since then we have tried getting some feedback from EMI, Universal and Sony. All declined to comment.

The news doesn't come as a surprise to those who have been working in the business. In a piece that was published in a q&a with the Alfa Matrix people back in June 2011 in the 1st issue of "Matrix Revelations", our chief editor Bernard Van Isacker said the following when asked if a CD would still exist in 5 years: "Yes, but in a different format. Normal CDs will no longer be available because they don't offer enough value, limited editions on the other hand will remain available and in demand for quite a few more years. I for one buy only limited editions because of the added value they offer: a nice design, extra bonus gadgets, etc. The album as we know it now however will be dead within 5 years, if it isn't even sooner. I predict that downloads will have replaced the CD album within the next 2 years. I don't see that as something negative, it just has run its course, let's leave the space to limited editions (including vinyl runs for bigger acts) and downloads instead."

It's a move that makes completely sense. CD's cost money, even when they don't sell because there is stock storage to be paid; a label also pays money to distributors when CDs get returned to the labels when not sold and so on. In short, abandoning the CD-format will make it possible to just focus on the release and the marketing of it and no longer focus on the distribution (since aggregators will do the work as far as dispatching the releases to services worldwide) and - expensive - stock maintenance. In the long run it will most surely mean the end for many music shops worldwide that only stock and sell CD releases. In the UK for instance HMV has problems paying the labels already and more will follow. It makes the distribution of CDs no longer worth it.

Also Amazon will benefit from this as it will surely become the one and only player when it comes to distribution of the remaining CD productions from labels. Packaged next to regular album downloads via its own Amazon MP3 service it will offer a complimentary service.

The next monument to fall? That will be printed magazines as people will want to consume their information online where they also read most of the news.

What are your feelings? is it a move that you like or not?


Read more at ONTD:http://ohnotheydidnt.live...z1cOHn3luD

Its a bad move as i have always always said on this forum for years now. What people dont get is the fact that your are replacing it with a format that not everyone has, wants, or has equal capabilities with. OK everyone has a computer basically but speeds vary, on what you are doing, processing speed, downloading speed etc...ALSO as everyone and their mother in music has said the Quality of a Mp3/digital is total crap compared to what its replacing and what IT replaced to begin with. I dont doubt labels stopping the manufacturing alot of new releases, this has been going on for a couple of years now, alot of artists have had digital only releases through amazon and itunes, but lets get this straight, that doesnt help artists with overhead costs, that helps labels and those outlets take more. The only costs being saved benefit labels, if you think that the money saved will go into anything but pockets you are nuts and NOT artists pockets, suits and apple and amazon etc..

As for special editions etc...Most outlets already have stopped carrying things like this, BEST BUY has dropped its stock level of catalog and more UN-mainstream artists every year for a decade. I mean i can walk into a BEST BUY in NYC (the major market) and look for the new Daryl Hall cd or the new Van Hunt or Joss Stone or Sondre Lerche or the Jayhawks, and get a look of WHO??? and then go through what the store has and find nothing but 683 dust covered copies of the new Kanye/JayZ cd, that was a waste of stock levels. The point is there is no longer a major music retail that actually is in the business of selling music and working with artists and labels, that ship sailed when best Buy bought out Sam Goody and pillaged it, and when a judge in court said close down Tower Records there is no need for this business anymore. Thats where we are at, and the writing was on the wall when digital was given the upperhand but never ever was able to become a selling force, and never will be because the consumers can never have an equal source of getting it.

So totally eliminating the cd from new releases, wont really hurt because most new stuff is taking up space after a week, the elimination of past catalog and that source is going to hurt for a long long time and grow.

Graycap23 said:

If true, I'm done buying music. I don't care 4 downloads regardless of the quality.

I second that emotion.

^ That's why it's not possible for them to make that bold announcement that it will end. I mean usually when someone says something is reaching its end "soon", it's usually from what they hear from the grapevine. I think how CDs can be still good for someone's back catalog. Labels would lose money if they do this in 2012, or as Joe Tyler said eloquently enough, 8-12 years. I know it might end one day but I don't think it'll be 2012. 2032 would be a better year. By then I'll own a million CDs, about 500,000 of them would be purchased.