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Hey Santa, The Disc Is Dead – Gartner urges music industry to go digital first

In: Communication|Computer|Hardware|Site Feeds|Software|VoIP

23 Dec 2008

Gartner Research is advising the music industry that by Chrismas 2009, they should be embracing a “digital first” approach to music sales, leaving the CD in the digital dustbin. According to Gartner, physical music revenue went from 91% of overall sales in 2005 to 77% in 2007. That’s a trend that’s only going to accelerate, with the firm stating that 77% of US households are expected to have broadband internet by 2012. Gartner’s thoughts don’t seem particularly original, but they are worth reiterating:

“By propping up the CD business, rather than fully investing in online distribution alternatives, the major labels and the larger music industry have neither succeeded in stamping out piracy nor done much to recreate the business models of the old ‘record business,’. Music labels should instead emphasize ‘digital first,’ making all new releases and catalog issues via digital services and moving CDs to an on-demand publishing mode.”

Of course the music industry is currently attempting to turn ISPs into content nannies while exploring a piracy tax on broadband customers — so they are embracing digital. They’re just doing it slowly and in that charismatic, music industry way.
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