[Dixielandjazz] Is the CD dead?

Steve Barbone barbonestreet at earthlink.net
Fri Oct 27 13:04:20 PDT 2006

The distribution of recorded music is changing rapidly according to EMI,
Sony & Warner. 

Steve Barbone

EMI Music CEO says the CD is 'dead'

LONDON (MarketWatch) -- 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. But there remains a place for physical media, Levy

"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.

Levy said EMI is continuing to hold talks with Google Inc., on an
advertising-revenue sharing partnership with the community video Web
site YouTube, which the Internet search giant acquired in October for
$1.6 billion in stock.

EMI's rivals, Warner Music Group Corp. (WMG), Sony BMG - a joint venture
between Sony Corp. (SNE) and Bertelsmann AG - and Universal Media have
all signed content deals with YouTube.

"The terms they were offering weren't acceptable," Levy said, adding
that EMI continues to be concerned about copyright issues.

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