According to Los Angeles Times today, Universal has decided to raise prices on CDs after other labels did not follow suit on lasts years price reductions. It's also believed that the savings were not passed on to consumers anyway, as the retailers such as Tower Records were not in a financial position to do so. In addition, this reporter over at Audio Revolution thinks that the CD is on it's last leg as a form of entertainment.
The CD has bigger problems than being overpriced. Competing with illegal downloads is impossible; however, the problem with the CD as a format is that it no longer meets the technological or entertainment value demanded by the modern consumer. On a technological level, CDs sound better than MP3's without question but in comparison to DVD-Audio or SACD (UMG prefers SACD but has released a number of titles in each format) the CD is pathetically underpowered. CDs (in almost all cases) do not have 5.1 surround sound, higher resolution stereo tracks (20 and 24 bits at 96 or 192 kHz sampling rates) and other added values found on the new DVD-Audio and partly on the SACD format. Despite the late rush to promote and sell lower resolution downloadable music, consumers still appreciate better quality. In the world of video, hundreds of thousands of consumers per month upgrade to HDTVs that are exponentially more expensive than traditional TVs. Even with very little HDTV programming being broadcast to date, consumers find the value proposition of a wider, more resolute TV worth $ 3,000 to $ 30,000 or even higher. The value proposition of CDs is far less favorable to consumers now 20 plus years into the format's tremendous run. |
Do you
agree with that statement? Is the decline of stereo CD matched with a rise in SACD and DVD-A, or are the dollars eaten up on DRM downloads and $ 400 dollar portable players? Nowdays, quality isn't the only issue. There are trade-offs for 'good enough' quality if a consumer can put it in their pocket or take it on lunch break or create a playlist for the road. The consumer has to decide what fits their lifestyle best, what is the best value - for them. That literally changes as each day passes and we want flexability. Maybe it's not always a question of superior surround sound technology, but rather all the choices we have now as opposed to 20 years ago. Maybe we don't want to listen to music tonight, we want to watch a DVD movie. Couple that with the ability to transform our music and video to fit our entertainment needs as we see fit. Can the labels truly believe they can sustain CD sales like they did in past decades? It's not the only circus in town anymore. Go ahead, raise prices, lets see what happens.
Source: Audio Revolution
