Faced with heat from iTunes and other digital downloads, the nearly-three-decade-old music CD is slowly melting away.
iTunes-purchased songs now account for 25 percent of the overall music market--both physical and digital--in the U.S., says an NPD Group report released Tuesday. However, CDs are still the most popular format for music lovers, winning a 65 percent slice of the market for the first half of 2009.
An iTunes playlist
(Credit: Screenshot by Lance Whitney)Digital music downloads have jumped in recent years, said NPD, hitting 35 percent of the overall market for the first half of this year, compared with 30 percent last year and 20 percent in 2007.
For the first half of 2009, iTunes itself snagged a 69 percent share of the overall digital music arena, trailed far behind by Amazon.com with 8 percent.
"The growth of legal digital music downloads, and Apple's success in holding that market, has increased iTunes's overall strength in the retail music category," said Russ Crupnick, entertainment industry analyst for NPD Group.
The CD, though, marches on. Among CD retailers, Wal-Mart leads with a 20 percent chunk of the physical music market, said NPD. Best Buy took a 16 percent share, followed by Target and Amazon at 10 percent each.
Still, the days of the CD seem numbered.
"Many people are surprised that the CD is still the dominant music delivery format, given the attention to digital music and the shrinking retail footprint for physical products," said Crupnick. "But with digital music sales growing at 15 to 20 percent, and CDs falling by an equal proportion, digital music sales will nearly equal CD sales by the end of 2010."
Correction at 3:30 p.m.: The venerable audio CD is actually 27 years old.
We knew the music of the Beatles was coming to the MTV video game Rock Band, but now we have a release date: September 9, 2009. That's when you'll be able to get The Beatles: Rock Band, a new edition of the game for the Xbox 360, PlayStation 3, and Wii consoles. You can start working on your bad "lonely hearts club band" puns now.
The game itself will retail for $59.99 in the U.S.; there will also be a $99.99 version that comes with Beatles-inspired guitar controllers, and a $249.99 "special edition" bundle. I'm guessing that one comes with a walrus.
The date is awfully cute, considering the Beatles' formally self-titled "White Album" contains that song called "Revolution 9," which consists largely of a repetition of the phrase "number nine, number nine, number nine." Conspiracy theorists say that if you play it backward it sounds like "turn me on, dead man" and is hence one of the clues that adds up to reveal that Paul McCartney died and was replaced by a lookalike early in the band's career.
But here's something else for conspiracy theorists of a different variety. September 9, 2009, happens to be a Wednesday in early September, and Apple has historically held iPod-related announcements on Tuesdays in early September. If you want to be mega-speculative, consider that there could be an announcement that week that in addition to Rock Band, the Beatles would finally be coming to iTunes. The band's catalog is currently not legally available for digital download.
There have been legal issues and general animosity for years between Apple Inc. and Apple Corps, the publisher of the Beatles' music. When record label EMI, which owns the rights to the Beatles catalog, inked a deal with Apple to make its catalog available on iTunes without DRM, buzz circulated that the Beatles could be added to the digital-media emporium soon. It's been almost two years, and no Fab Four yet. Late last year, ex-Beatle Paul McCartney said that talks had stalled. There's no real gauge on where things stand now.
But I guess you could just try playing a Steve Jobs keynote backward and see what hidden messages surface.
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