EMI Music Chairman and Chief Executive Alain Levy Friday told an audience at the London Business School that the CD is dead, saying music companies will no longer be able to sell CDs without offering “value-added” material.
“The CD as it is right now is dead,” Levy said, adding that 60% of consumers put CDs into home computers in order to transfer material to digital music players.
EMI Music is part of EMI Group PLC (EMI.LN). But there remains a place for physical media, Levy said.
“You’re not going to offer your mother-in-law iTunes downloads for Christmas,” he said. “But we have to be much more innovative in the way we sell physical content.”
Record companies will need to make CDs more attractive to the consumer, he said.
“By the beginning of next year, none of our content will come without any additional material,” Levy said.
CD sales accounted for more than 70% of total music sales in the first half of 2006, while digital music sales were around 11% of the total, according to music industry trade body the International Federation of the Phonographic Industry. CD sales were worth $6.45 billion and digital sales $945 million, the IFPI said.
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Well when they actually start to get artists to have original songs at a decent price without copying someone else mabye people will buy them again. But with the p2p genie out of the bottle who knows? I think it is too little too late for the music industry to keep control of the music they had such a rigid grip on in the past.
So they made 7.5 billion dollars and they are always whinning that they arent making money lol.
well the RIAA and MPAA have three companies to thank for digital music ibmmacintosh and microsoft
i have been saying this for a very long long time.