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Digital Music Taking Over

Despite the music industries efforts to fight the distribution of music through digital formats such as iTunes, experts predict that digital music will account for 1/3 of total music sales in the US by 2012. Unfortunately, increased digital music purchases will not compensate for decreased CD sales. What this article does not talk about is the increased profit margins that come with digital distribution. Let’s flashback to 2000 when A&M Records and several other recording companies sought and received an injunction that effectively shut down Napster: The fact that a college kid and his uncle could create a distribution network for digital music that would grow to over 26 million users worldwide should have cued in record companies that digital music sales would be the future of music. What we’re seeing now is that the companies that embraced and fostered the new technology are reaping the rewards and those that fought it are being forced to get on the train or be left behind.

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