The CD Ain’t Dead Yet

FROM FMQB: “BMG North America President/COO Charles Goldstuck spoke to the Jupiter Media Research Plug-In conference yesterday about the state of the digital music business. According to Billboard, Goldstuck believes that the traditional, tangible CD will determine what structure the music industry takes. “As goes the CD, so goes the industry,” Goldstuck said in his speech at the keynote session.

Jupiter senior analyst David Card told the audience that he didn’t believe digital music would lead to a format shift for the entire industry over the next five years, and advised that digital distribution should be thought of as more of an incremental source of revenue.

Billboard reports that executives from digital music companies such as Loudeye, MusicMatch, MusicNet, RealNetworks, and Sony Connect were in attendance, and warned that the sales of 99-cent songs is not the only way to make money in the digital music world. They spoke of subscription services as a more profitable method.

Goldstuck added that Microsoft’s expected entry into the digital music world will be a “threshold event” for the industry. He said, “This development will really be a shot in the arm for the subscription service model vs. the à la carte model.”