Can Music Survive Inside the Big Box?

_randy_64 writes "In a story that ties in nicely with a recent discussion about the possible reprieve for Net Radio, the Wall Street Journal asks Can Music Survive Inside the Big Box? The article discusses how the 'big box' stores (e.g. Wal-Mart, Best Buy) are cutting back on space and acceptance of music CDs. With 85% of music sales still coming from CDs, maybe this is another thing to push the music industry towards better online sales models? 'Thanks largely to aggressive pricing and advertising, big-box chains are now responsible in the U.S. for at least 65% of music sales (including online and physical recordings), according to estimates by distribution executives, up from 20% a decade ago. Where a store that depends on CDs for the bulk of its sales needs a profit margin of around 30%, big chains get by making just 14% on music, say label executives who handle distribution. One of these executives describes the shift as a tidal wave.'"

CD pricing

[Original Replica]

FTA"Music has become a commoditized item," he says. "The CD is perceived by the consumer to be a $10 item, and the manufacturers continue to release new titles at $15 to $18.98." To remedy that situation, he says he has urged labels to move to a "paperback-book model," with no-frills packages priced cheaply for most customers, and more deluxe presentations for die-hard fans."

I think the CD is a $1-3 item, because there are usually only that many songs worth buying. So I buy those 1-3 songs. Music has become commoditized, because there are few "whole works" kind of albums (ie Pink Floyd:The Wall, Holst:The Planets) more just one or two hits and some filler. but we've all said this before.

Re:The day the CD died

[Ayal.Rosenthal]

You know something, I completely agree with you. I think that myspace, as it was initially used, has helped music adopt to the technological change of distribution and much of what I listen to now is from semi-successful bands that will probably never sell in Wal-Mart (plug for my buddies at Classic Case). I'm not sad to see CDs go away, just like I'm not sad to see DVDs go away for video-on-demand. Music will still be here and probably in greater quantity and equal quality as production and distribution costs continue to decrease.

Re:Music might survive if ...

[siriuskase]

Big box retailers are interested in volume and marginal pricing. The range of music they pick, the bands that get prominent shelf space and the albums that appear in the advertising will all be driven by the bottom line.

No - if we want diverse musical forms to survive the big box stores, it will be despite them, not because of them.

Unless the big box retailers set up kiosks or some such system to sell the long tail. They can record a CD on the spot, just as easily as they can make photo CD's.

The trick is finding what you like in the first place. The usual systems are friends, internet, and radio. We will always have friendly word of mouth, and the internet is a great resouce that we didn't have a couple of decades ago. Not only does it enhance word of mouth, it allows bands and fans to expose music, taking over the main role of commercial radio. It is better at that anyway, since obscure bands with hardworking and loyal fans can get exposure without the cooperation of the traditional recording industry. Of course, I haven't listened to commercial radio since the 70's. My radio buttons are all set on NPR, college stataions, and a station with decent traffic reporting.