After filing for bankruptcy in August, the last Tower Records store in the US had been closed on 22nd of December 2006. The end of this well known music store chain had been interpreted by analyst as the end of the music retail business.
We do not agree with this analysis.
For 40 years, Tower Records, as a music retailer, sold recorded tapes, vinyls and compact disks because it was the media used to deliver music to the masses. They were participating to a supply chain that begin in the record studio and end at the store. With the sales declining worldwide, this distribution process is not suitable any more.
For sure, the CD as a media to deliver music to the mass has no future.
The internet is already the best way to distribute music to the consumers but that does not mean that the CD is dead.
The Compact disk and its associated packaging may and will also be seen as an object.
Like book collectors invest large amounts in their passion, we will see disk collectors (CD and vinyl). Yes, this will not be a mass market and as such the supply chain will have to adapt to these new market conditions.
The public will be happy to pay for the compact disk of the concert they are attending and will buy it as a souvenir of this event.
People will also buy compact disk (or even vinyl) on line or off line to have a better sound than mp3 can offer.
Why not imagine collectible disks (CD or vinyl) with special packaging created by well known designers that label’s suppliers will manufacture cheaply in China?
We tell you, the compact disk is not dead.