“The labels have made it very clear to me that they want to manage
the CD down … because they fear it is cannibalizing potential digital
sales,” he says. “The labels see it as a declining business and will no
longer invest in it” beyond the big-box merchants.
But Tuchman says labels should view the CD as a different business from
digital downloads, and one that targets a different demographic. If the
labels look at it from that perspective, and cut prices and invest in
other music merchandisers, then the CD can be incremental business for
them, he says.
depends on how much real estate we have left,” Tuchman says. “We don’t
see much of a change in pricing from the label side … so we think
music will continue to fade. By Christmas merchants will have a much
smaller music section, so I am not bullish.”
Interesting news that could lead to evening the playing field for indie artists even more by denying the major labels the access to better distribution. Get those download cards ready!