Downloading .v. CD

Outside of CD's and DVD's other forms of digital media could be viewed as a threat to the traditional music store. MP3 players that download directly from internet sources have had an impact on physical music sales. The real music enthusiast will still want to buy the physical product but a lot of casual listeners are happy to just download the tracks. There are concerns regarding the legitimacy of some internet sites offering free downloads. If income is not generated for the music industry then investment in upcoming talent cannot be made and the future of music will be all the poorer.

I do not believe that there will ever be adequate control on music distributed via the internet. If the music industry is to survive in its traditional form (i.e. major labels creating major acts rather than fragmented with individual acts promoting themselves purely via the internet) then the way forward has to be via a physical product - CD or its successor.

The challenge is to keep the ordinary music consumer interested in the physical product. To do this there must be value for money for the consumer. The day of expecting more than €20 for an album is fast passing. The benchmark for a new release (other than 'special' editions) is now €16.95. The new Oasis album is actually on sale in our stores at €13.95.

Ours is the only business where the average retail price of our main product - a CD - has fallen by 25% over the past 5 years. I believe that the price will continue to drop.

For the past few years we have been offering a lot of back catalogue in a deal of "2 for €20". We have now abandoned this deal as we can offer most of our back catalogue at an individual price of €9.95 or less with average prices dropping to €8.95 and €7.95.

It has never been a better time to be a consumer. You have all the options.

But do not dismiss your local music store. If you have not visited in a while come in and have a look. You may find that you can enjoy the physical CD for not much more than you are paying for a digital download. A CD looks and feels much better than a listing on your computer screen! It cannot be lost by a computer crash and you will not lose your entire music collection if your mp3 player is lost or stolen!