Wednesday, February 25, 2009

The state of the audio CD

I have often wondered about the "ghost towns" of the web. Abandoned web sites and blogs that were written and then deserted. This one almost became one of those. Back in November, I wrote a true story about Comcast and their cancellation fees. They were sending me to collections because I moved a total of 2 miles away and they could not provide service in that one small stretch of road. Anyway, they called a few days after I wrote that blog and said they were waiving the fee. I was supposed to get a letter confirming that. I still have not. As far as I know, they let me out of it.

If I had to give advice to fellow bootstrappers and those running startups, I'd say avoid contracts where you can. Especially in this economy.

So anyway, did I ever talk about what Revolve does? We duplicate and print CDs and DVDs and transfer video. revolve-cd.com We've done OK so far but the economy has not helped as of late.

As a business owner, I obviously need to be on top of changing technology. So, for the last year or so, I've been preparing for the fall of the audio CD. You keep hearing reports about CD sales going in the tank. I thought that it would be inevitable that I would have to change focus which is sort of a drag considering the whole reason I started doing this was to get to work with musicians and hear great music. So you can imagine my surprise as we recorded steady audio CD sales for Jan. and Feb. Then I saw this: Online Retailer Sees Growth in CD Sales.

Once I read this, it seemed to make sense. Of course CD sales are falling for the major labels who have all that overhead and charge $15-20 a CD. But its a winner for the independent artist who depends upon gigs to get heard. Having a CD to sell at shows or handout as a promo helps the independent artist get the music out there.

I think artists can keep their CD duplication costs down by keeping the runs at less than 500, printing minimal art and having their songs available also for download. They can still sell the CDs for as much as $10 with duplication costs often no more than $2-3 per disc with full color art. They can also have more extensive art in digital format that can be printed if the recipient desires. The artist does not have to assume this cost. Basically, use the old medium of the CD tied in with digital downloads to maximize old and new to be on the cutting edge.

My line of work is bridging old and new technology. The CD is getting old fast, but I don't think its dead yet. In 2012, we'll talk about this again. But with the CD still accounting for 80% of music sales, I think its safe to start thinking about funeral plans, but not necessarily filling the grave and leaving flowers.

Thanks for reading. Until next time (which I certainly hope is sooner)...

Zack