It’s Over: The death of retail CD sales is upon us
JB Hi-Fi have pulled the plug on CD Sales. Why ? They’re getting killed by online sales. Honestly is this at all surprising to people ? For years we’ve been gouged $30-$40 on albums that contain 1 to 2 great songs, 3 or 4 mediocre songs and a then completed with a bunch of fillers.
Singles are no better, at $5-$10 you might get a couple of B-side tracks, but usually they’re B-side for a reason.. because they’re crap !!
Online retailers (read: iTunes) give users the ability to choose tracks at their discretion, resulting at a much lower overall cost. Sure there’s the argument for that physical copy that might include lyrics, but ultimately that’s completely negated by the convenience of digital downloads.
Even desktop downloads are becoming outdated, direct-2-device downloads are clearly the future. The iPhone and many others are already offering this. So to buy your music, it’s as simple as pulling the device out of your pocket, searching for the song and clicking buy. 30 seconds later your listening to the music.
Today’s announcement by JB Hi-Fi will be the first of many by retailers to stop selling CD’s at retail. The only hope dedicated music stores like Sanity is to move online. Whilst they already have an online presence, they should be using this remaining time in retail to heavily promote their online site. They are of course in competition with the 10,000 pound gorilla – iTunes.
The other option for music retailers is to diversify they’re product range.. only problem is the natural extension is into other media like DVD. With Tivo and BlockBuster On Demand and again iTunes, already offering digital downloads that space is about to get even more competitive. Microsoft later this year will launch it’s 1080p movie streaming service via the Xbox 360, sure pricing is still to be announced, but good luck competing with that.
It truly is just a matter of time now before retail outlets like Target, K-mart, Big-W will switch out CD departments for other, more profitable merchandise. The question is how quickly these retailers will stop fighting the inevitable. Some will be pulled kicking and screaming into the new generation. The same goes for physical CD die hards, however if that’s you, you shouldn’t be too worried, there will still be CDs available at retail for many years to come, just be prepared to go searching for them.
There is of course still people selling records, this is exactly what will become of retail CD sales, small boutique, specialist stores that cater to a niche. Just don’t expect these to be in your local shopping centre, massive rent is the enemy of a dying business model.
Update
As discussed in the comments, JB Hi-Fi’s announcement is only related to the them ceasing the sales of singles. That said I doubt albums will be far behind.
More @ News.com.au
Author: Jason Cartwright
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4:59 pm on July 2nd, 2009
They are only getting rid of CD singles, and not albums. Your article is a little unclear on that.
8:35 pm on July 2nd, 2009
I'd like to echo (and amplify) what itsross said… JB HiFi are only ceasing the sale of CD singles. Your article is more than a little unclear. It is down-right misleading and ill-informed. Anecdotally, the majority of my friends and customers continue to buy music on CDs and will continue to do so for sone time I'm sure. JB HiFi have never “gouged” and gave always been the most reasonably priced of music retailers. My only reasonfor going online is my penchant for early adoption and a desire to remove those damned cases of inefficient disks from my shelves. My wife would still be buying from JB if I hadn't made the choice for her. I'm not sure why all tech writers need to sound the death knoll for older technology so readily and loudly. It seems to me like you all want to claim you called it first when really and truly, who gives a $#!+ as it just inevitable evolution of the technology. We all know CDs will eventually go away… No scoop there!
10:55 am on July 3rd, 2009
i think the above will happen with CD albums in 5 -10 years.
11:08 am on July 3rd, 2009
It is only a matter of time before music CD's are as rare as Vinyl.
In one of my local Westfields there used to be the following music stores, all closed down now:
Independent music store
Sanity
HMV
Virgin
The only stores left are:
Virgin in Myer
Jb Hi Fi
Big W
Target
11:09 am on July 3rd, 2009
Also EZY DVD closed down recently in the same shipping centre.
9:38 pm on July 3rd, 2009
I still don't think albums will disappear for quite some time.
There are still TONS of people who have never bought a song online. Like, the vast majority of people. As I think through all my aunties and uncles, cousins and sister, I strongly believe I am the only one who has ever bought music via digital download.
While the CD single is different, in that it is mainly a youth orientated product (take a look down the top 40 singles charts to see that). And younger people are more quick to respond to change and move to digital downloads.
Most of my family still uses Lime Wire is their favourite digital download shop.
No doubt artist like Britney Spears et al will be the first to cut out physical albums in the next year or two. But I would still expect to see the best of Johnny Farnham on Kmart shelves 10 or more years from now.
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