Comments on: The Gradual Demise of the Compact Disc http://www.stubbornmule.net/2008/07/compact-disc-decline/ Obstinately objective Sun, 14 Mar 2010 12:56:59 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: stubbornmule http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1528 stubbornmule Mon, 22 Sep 2008 04:43:59 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1528 <a href="http://www.smh.com.au/news/mobiles--handhelds/articles/unlimited-music-for-the-price-of-a-coffee/2008/09/22/1221935504439.html" rel="nofollow">Vodafone have launched a subscription music service</a>, so the future of music is slowly getting closer here in Australia. I'm still counting on Rhapsody starting here too before the end of the year. Vodafone have launched a subscription music service, so the future of music is slowly getting closer here in Australia. I’m still counting on Rhapsody starting here too before the end of the year.

]]> By: stubbornmule http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1200 stubbornmule Fri, 22 Aug 2008 12:46:14 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1200 Sad to say, in the US the music industry is not looking to the future either and recent changes to licensing fees for internet radio <a href="http://www.washingtonpost.com/wp-dyn/content/article/2008/08/15/AR2008081503367.html" rel="nofollow">could push Pandora out of business</a>. Sad to say, in the US the music industry is not looking to the future either and recent changes to licensing fees for internet radio could push Pandora out of business.

]]> By: stubbornmule http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1121 stubbornmule Fri, 15 Aug 2008 04:11:20 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1121 P.S. I think that "mule" is better than "stub", not because I don't like the term but because of confusion with <a href="http://twitter.com/stub" rel="nofollow">this stub</a>. P.S. I think that “mule” is better than “stub”, not because I don’t like the term but because of confusion with this stub.

]]> By: stubbornmule http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1120 stubbornmule Fri, 15 Aug 2008 04:09:49 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1120 @Greg: While digital sales are certainly low, don't forget the power of growth differential! As I noted in the post, "Sales of digital music grew by more than 40% and at that rate, if the 2006-07 trends continue, digital sales will exceed physical sales in under five years!". As far as other comparisons elsewhere are concerned, we are certainly behind the states. According to <a href="http://76.74.24.142/81128FFD-028F-282E-1CE5-FDBF16A46388.pdf" rel="nofollow">RIAA figures</a>, 2007 digital album sales were 5.7% of CD album sales, while in Australian this figure is only 2.9%. If you add in US subscription sales, this percentage rises to 8.4%. I don't have subscription figures for Australia but I expect it would be extremely low as none of the major subscription services operate in Australia yet (although I have heard Rhapsody is launching here before Christmas). @Greg: While digital sales are certainly low, don’t forget the power of growth differential! As I noted in the post, “Sales of digital music grew by more than 40% and at that rate, if the 2006-07 trends continue, digital sales will exceed physical sales in under five years!”.

As far as other comparisons elsewhere are concerned, we are certainly behind the states. According to RIAA figures, 2007 digital album sales were 5.7% of CD album sales, while in Australian this figure is only 2.9%. If you add in US subscription sales, this percentage rises to 8.4%. I don’t have subscription figures for Australia but I expect it would be extremely low as none of the major subscription services operate in Australia yet (although I have heard Rhapsody is launching here before Christmas).

]]> By: Greg http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1119 Greg Fri, 15 Aug 2008 00:22:18 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1119 A further request to the mule (may I call you Stub?) for a control case by which to judge the success of the australian industry's tactics. Do you have comparable numbers for countries that have embraced the digital delivery model? I would be curious to see if they really can supplement their loss in physical sales with digital ones, my prior is that its a less profitable business model. Attention Passengers: The gravy train terminates at the next stop, all-off all-change. A further request to the mule (may I call you Stub?) for a control case by which to judge the success of the australian industry’s tactics. Do you have comparable numbers for countries that have embraced the digital delivery model?
I would be curious to see if they really can supplement their loss in physical sales with digital ones, my prior is that its a less profitable business model.

Attention Passengers: The gravy train terminates at the next stop, all-off all-change.

]]> By: stubbornmule http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1118 stubbornmule Fri, 15 Aug 2008 00:22:04 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1118 @Greg: thanks for the comments. I certainly agree that the distributors are there to generate profits not spread love, but I think that they are under-estimating the profits that they can generate from alternative digital distribution models. It reminds me of the initial battles Hollywood fought against DVD and now they usually make more money from DVD releases than cinema releases. Of course, another factor at play here is the perennial challenge established players have with innovation: often innovation risks cannibalising established businesses, which means that it can be easier for new entrants to innovate. The Qantas launch of JetStar is an example of an attempt to combat this challenge. @Greg: thanks for the comments. I certainly agree that the distributors are there to generate profits not spread love, but I think that they are under-estimating the profits that they can generate from alternative digital distribution models. It reminds me of the initial battles Hollywood fought against DVD and now they usually make more money from DVD releases than cinema releases.

Of course, another factor at play here is the perennial challenge established players have with innovation: often innovation risks cannibalising established businesses, which means that it can be easier for new entrants to innovate. The Qantas launch of JetStar is an example of an attempt to combat this challenge.

]]> By: Greg http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1117 Greg Fri, 15 Aug 2008 00:11:42 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1117 Note that *total* digital sales are less than the *change* in physicals sales in 2007, I suspect music distributors might just be rational capitalists who are trying to run their business with maximum profit (as they are supposed to). There seems to be a confused tone in some of this discussion that music distributors exist to deliver lifestyle enhancement to the public, they dont. That responsibility falls to the invisible hand of capitilism. If a business model that better enhances people's utility exists, it should spring up alongside and crush the status quo. That this hasnt happened is a question of regulatory frictions, who's pulling the strings on legislation here? the same status quo that a natural evolution would destroy? therin lies the critical problem, government protectionist legislation that, as per usual, protects the public from better/faster/cheaper goods and services. I dont think anyone should critisize the distributors, they are doing the natural rational thing for the environment they're in (if i were CEO id probably follow a similar path). And if they have unreasonable influence over legislation thats also not their "fault", since getting that influence is what all business should naturally try to do. The problem is that they're succeeding, and the blame for that lies with government. Remembert the outcry over protecting the australian industry when we were negotiating the US free trade agreement? Be careful what you wish for ppl. Note that *total* digital sales are less than the *change* in physicals sales in 2007, I suspect music distributors might just be rational capitalists who are trying to run their business with maximum profit (as they are supposed to). There seems to be a confused tone in some of this discussion that music distributors exist to deliver lifestyle enhancement to the public, they dont.

That responsibility falls to the invisible hand of capitilism. If a business model that better enhances people’s utility exists, it should spring up alongside and crush the status quo. That this hasnt happened is a question of regulatory frictions, who’s pulling the strings on legislation here? the same status quo that a natural evolution would destroy?
therin lies the critical problem, government protectionist legislation that, as per usual, protects the public from better/faster/cheaper goods and services.

I dont think anyone should critisize the distributors, they are doing the natural rational thing for the environment they’re in (if i were CEO id probably follow a similar path). And if they have unreasonable influence over legislation thats also not their “fault”, since getting that influence is what all business should naturally try to do. The problem is that they’re succeeding, and the blame for that lies with government.

Remembert the outcry over protecting the australian industry when we were negotiating the US free trade agreement?
Be careful what you wish for ppl.

]]> By: Online Data and Charts with Swivel « A Stubborn Mule’s Perspective http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1114 Online Data and Charts with Swivel « A Stubborn Mule’s Perspective Tue, 12 Aug 2008 04:47:37 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1114 [...] so you can expect to see a few more online charts featured here. As a start, following on from an earlier post on declining CD sales in Australia, I have posted ARIA album sales data for CD, cassette, vinyl and [...] [...] so you can expect to see a few more online charts featured here. As a start, following on from an earlier post on declining CD sales in Australia, I have posted ARIA album sales data for CD, cassette, vinyl and [...]

]]> By: Duncan http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1116 Duncan Tue, 29 Jul 2008 04:19:34 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1116 Very good :) I stumbled across another source today - Audiobooks: http://www.nytimes.com/2008/07/28/business/media/28cassette.html?em&ex=1217476800&en=4674bc0af138090f&ei=5087%0A That statement about keeping track of where you're up to makes perfect sense; that's actually annoying with DVDs as well, when you break a movie overnight for example (as Gus and I did with Mediterraneo recently), it's not simple to resume at the same place. Very good :)

I stumbled across another source today – Audiobooks:
http://www.nytimes.com/2008/07/28/business/media/28cassette.html?em&ex=1217476800&en=4674bc0af138090f&ei=5087

That statement about keeping track of where you’re up to makes perfect sense; that’s actually annoying with DVDs as well, when you break a movie overnight for example (as Gus and I did with Mediterraneo recently), it’s not simple to resume at the same place.

]]> By: Bookmarks about Piracy http://www.stubbornmule.net/2008/07/compact-disc-decline/comment-page-1/#comment-1115 Bookmarks about Piracy Mon, 28 Jul 2008 16:45:31 +0000 http://stubbornmule.wordpress.com/?p=89#comment-1115 [...] - bookmarked by 4 members originally found by toasterface on July 16, 2008 The Gradual Demise of the Compact Disc http://stubbornmule.wordpress.com/?p=89 - bookmarked by 4 members originally found by [...] [...] – bookmarked by 4 members originally found by toasterface on July 16, 2008 The Gradual Demise of the Compact Disc http://stubbornmule.wordpress.com/?p=89 – bookmarked by 4 members originally found by [...]

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