MG Blog

Source: Market Watch
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.
“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.

We can guess that the CD will become box full of gadgets. It means that the majors are ready to lower their profits to finance the CD selling. It also means that the market has changed, but the majors are not ready to change.