Snags could scratch CD-DVD launch

Legal and licensing problems could scuttle plans to sell the hybrid discs. That won't please the music industry.

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The CD sales slump of 2000-2004

This article uses the common Music Industry argument that file swapping is the reason for the lack of sales. However, the market data shows that CD sales are on a rebound. If the first were true then the second should be a continued decline, but it's not the case.

There are a lot of common technology-market myths like this and we need to begin dispelling them. In this case, should an economist have access to the necessary data, then we might learn that unlike previous depressions and recessions, not all entertainment gained from the psychological escapist need that this economic downturn would usually see. Why is this? My guess is that if we follow the money, we will see why people turned from reaching into their pocket for the illegal but not immoral act of copying music. When the discretionary income either disappears, as in the case of a large part of the technology industries (from Web-based dreamers thru overly invested telecom and computer companies), then the money to buy recordings becomes very tight. Since there was an easy alternative, and the Consumer Electronics Industry was full supporting the alternative through the sells of players (like Apple?s iPod), this was the music industry demonstrating how set in their ways they really are. Responsiveness to market changes is the hallmark of a young industry while rigidity or rigor mortis is the predecessor of extinction.

Here, we see it again. Fighting the hybrid CD-DVD is bad strategy. The major labels should embrace it and build the opportunity appropriately. Responding with new business processes and ventures to the advent of a new technology is how an industry can be reinvigorated. When vinyl began to be replaced by the compact disc, the music industry could hear the value proposition and went with the flow. With adding DVD capability to the CD or vice versa, they need to see the value proposition and put their music videos where their music is. Value to all! This is something that the file swappers would be hard pressed to steal.

Thank you,
Harrison Rose
CEO
Nisvara, Inc.

[Caycee]

While I cant speak for everyone...

Way overpriced and poorly marketed. 10-15 bucks for a cd with 2 or 3 good songs compared to a older or budget movie at a similar price or even a new movie for 25? satallite radio for same price as one cd a month?or just plain old free radio? While p2p is an issue im pretty sure they should be looking elsewhere for answers. As for me they lost me along time ago (I do have a nice movie selection though)