Reports That Major Record Labels Will Discontinue CDs by the End of 2012 - Sitcoms Online Message Boards

JamesG · 11-03-2011, 10:51 PM

CD-Format to be Abandoned by Major Labels by the End of 2012
10/23/11

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.

Update: We were approached by several people working with major labels, who indeed re-confirm that plans do exist to give up the CD.

We keep on trying to get an official confirmation, but it seems that the matter is very controversial, especially after Side-Line brought out the story.

http://www.side-line.com/news_commen...d=P46980_0_2_0

MickeyMac · 11-04-2011, 12:16 PM

Good

Vinyl rules!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The Great One · 11-05-2011, 03:32 PM

I love vinyl records and I hope they make a major return to the music market place.

dakert · 11-05-2011, 10:06 PM

I hope KISS releases a CD before the end of cds

JamesG · 11-05-2011, 10:24 PM

Quote:

Originally Posted by dakert

I hope KISS releases a CD before the end of cds

Their new album 'Monster' is tentatively set for Spring 2012.

Even if CDs are gone by then I'm sure there'll be some "limited" or "special" edition of the album available.

Nighthawk76 · 11-05-2011, 11:55 PM

I doubt the accuracy of this story. There is no getting around the fact that there has been a major decline in CD sales over the last decade due to downloading. However, there have been big selling CDs from artists such as Taylor Swift, Lil Wayne and Katy Perry. Also such classic albums as Journey's Greatest Hits and AC/DC's Back in Black still sell between 500,000 to 1,000,000 copies per year. Also, last year the special edition of The Rolling Stones' Exile on Main Street sold over 1,000,000 copies and its an album that was 28 years old and had never been out of print. I still think there is money to me made in CD sales. And who are "several people working with major lables"? That could be the people who sweep the floor.

MickeyMac · 11-06-2011, 05:28 PM

Quote:

Originally Posted by The Great One

I love vinyl records and I hope they make a major return to the music market place.

They already have. I work in a record store and we sell lots of new vinyl.

11-03-2011, 10:51 PM	#1
JamesG Freakshow Moderator Forum Icon Join Date: Feb 01, 2008 Location: Brooklyn, NY Posts: 57,039	Reports That Major Record Labels Will Discontinue CDs by the End of 2012 CD-Format to be Abandoned by Major Labels by the End of 2012 10/23/11 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. Update: We were approached by several people working with major labels, who indeed re-confirm that plans do exist to give up the CD. We keep on trying to get an official confirmation, but it seems that the matter is very controversial, especially after Side-Line brought out the story. http://www.side-line.com/news_commen...d=P46980_0_2_0

11-05-2011, 03:32 PM	#3
The Great One Member Forum Veteran Join Date: Aug 29, 2006 Posts: 6,378	I love vinyl records and I hope they make a major return to the music market place.
	__________________ .

11-04-2011, 12:16 PM	#2
MickeyMac Member Forum Star Join Date: Jun 18, 2008 Location: Kalamazoo, Michigan Posts: 19,004	Good Vinyl rules!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

11-05-2011, 10:06 PM	#4
dakert Member Forum 3000 Club Member Join Date: May 10, 2007 Location: Altoona PA Posts: 3,411	I hope KISS releases a CD before the end of cds

11-05-2011, 11:55 PM	#6
Nighthawk76 Rachel Berry Forum Celebrity Join Date: Feb 28, 2003 Location: Illinois Posts: 23,254	I doubt the accuracy of this story. There is no getting around the fact that there has been a major decline in CD sales over the last decade due to downloading. However, there have been big selling CDs from artists such as Taylor Swift, Lil Wayne and Katy Perry. Also such classic albums as Journey's Greatest Hits and AC/DC's Back in Black still sell between 500,000 to 1,000,000 copies per year. Also, last year the special edition of The Rolling Stones' Exile on Main Street sold over 1,000,000 copies and its an album that was 28 years old and had never been out of print. I still think there is money to me made in CD sales. And who are "several people working with major lables"? That could be the people who sweep the floor.