Digital versus Physical Sales: The Ups and Downs of Both

Hello everyone,

I found 'The Long Tail' to be an accurate analysis of the current state of both online and physical retailers. The limitations on physical space and the feasibility of selling a particular product heavily detriments the 'brick and mortar' longevity. The bountiful space available in a digital realm allows for more selection and lower costs of storage.

Physical retailers of media are a dying breed because of the recent explosion of readily accessed material. I find myself still browsing the shelves for CDs and DVDs, but rarely buy product, if at all. The cost is high and the selection is low. I will turn to a RedBox or Pandora for entertainment before I indefinitely purchase a physical copy.

As an aspiring artist I understand the implications of my decision. Companies who have strived to produce and market these products are losing money in the long term. I would not want to lose profit over my creations and hope for an entertainment revolution at some point.

As Chris Anderson stated, "Surprisingly enough, there's been little good economic analysis on what the right price for online music should be', which I whole-heartedly agree on, but there are some implications(1). The entertainment industry has not reformulated it's business plans to keep up with demand(2). It seems they are stuck, just like retailers, in a physical retail mindset. They claim it isn't fair, but like most companies, if they fail to adapt, they will fail.

Record Labels also seem to be outdated as of late. There are benefits of using a Record Company, but with Digital Audio Workstations and Digital Technology taking the reigns and allowing practically anyone to write music. At least with Record Companies, you are guaranteed a great quality mix and less stress involved with distribution.

Record labels and production studios may always exist, but the industry is transforming into a easily accessible and cheaper alternative to having companies run the marketing and distribution for you(3). Even though many try to be musicians, only the top notch individuals will make it through. In essence, even the cheaper and easily accessible side of creating music will ween out the individuals who don't stand a chance.

Whether the major companies change their marketing strategies and business plans or not, they will always be the preferred method to music distribution. I don't see an imminent death of major companies, but a weaker market, which will force those same companies to cut costs and corners. This is the revolution we need in order to make a better outcome for musicians and companies alike. This in turn will force CD sales to become cheaper and more affordable.


Sincerely,

Alexander C. Torri


Sources:

(1) Anderson, C. (2004, December 13). The long tail. Retrieved from http://changethis.com/manifesto/10.LongTail/pdf/10.LongTail.pdf


(2) Rehab, R. (2012, May 15). How the music industry failed to adapt. Retrieved from http://raprehab.com/how-the-music-industry-failed-to-adapt/


(3) Guarino, M. (2009, December 17). Could home recording doom professional music studios?. Retrieved from http://www.csmonitor.com/Innovation/2009/1217/Could-home-recording-doom-professional-music-studios