The compact disc isn't going the way of the dinosaur anytime soon, according to self-described "professional music geek" Alan Cross.
The host of the Ongoing History of New Music told CTV News Channel on Wednesday he disagrees with an article in Side Line Music Magazine which suggests the major labels plan to abandon the format by the end of 2012 at the latest.
Cross, who acknowledges the CD's life expectancy is limited, shared five reasons why it will stick around at least for a little while yet.
Cash is king: First and foremost, CDs are still generating revenue for the record companies. Yes, the revenue stream from compact discs has declined in recent years as many users have switched to downloaded versions of their favourite albums, but one million album hard copies are still sold each week in the U.S.
"Some people just like holding something in their hands," Cross told CTV News Channel.
Retailer relations: If record companies stop producing shippable versions of their artists' offerings, they will effectively cripple the stores that sell those products and thereby damage important and longstanding business relationships. From big box retailers like Wal-Mart to independent record stores, the retailers play a vital role in getting product into the hands of fans whose computer skills may not be up to speed.
"I just can't see them saying 'sorry guys, after 100 years of selling products for us, we're not going to do that anymore,'" Cross said.
Old-school tendencies: The population of music fans who don't, and won't, purchase their music over the Internet is massive. Eliminating CDs would mean eliminating a massive segment of the market -- not something music companies are likely to do any time soon.
"The parents who have a VCR whose clock is still flashing 12 o'clock, this is the group we're talking about," Cross said. "Get my dad on the computer and working iTunes and downloading things to an MP3 player and plugging it into his car? I don't think so, that isn't going to happen."
Cruising tunes: People still listen to music in their cars while driving. It's a fact. Most car stereos still don't accept a USB port or an MP3 jack, and thus, people still proudly display their CD cases on their sun visors. Those people represent important dollar signs for the record companies, Cross said.
Swag: Vinyl might be the medium of choice for indie bands and their hipster fans, but it's expensive to produce and therefore CDs are more often the go-to choice. And those bands can still make money from selling CDs at concerts and through their websites -- an important revenue stream for struggling groups trying to put gasoline in the tank of the tour van.
"It will cost you $4 or $5 to make a CD and you can sell it for $10 or $15. If you sell 1,000 a month off the stage at your gigs that's getting pretty close to a decent revenue stream," Cross said.
