Research Says Young Listeners May Embrace CD Quality Audio. Habit Says It Won't Be on CD.

The music industry wishes young listeners would abandon low-bit-rate compressed digital music for harder-to-pirate and more profitable CDs. Contrary to the long-held belief that young listeners think lossy compressed music is “just fine,” Harman researcher Dr. Sean Olive has published results from the first peer-reviewed scientific test showing that young listeners will in fact choose CD-quality audio over lossy alternatives when given the choice. Has the dream of a new generation embracing CDs come true? Not so fast.

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How Vinyl and iPods Ganged Up to Kill the Audio CD

NPR reported that CD sales tanked in 2010, particularly among younger buyers. The trend suggests that vinyl and iPods are sinking the audio CD into the so-called “fidelity belly,” where mediocre products go to die.

In his book Trade-Off, journalist Kevin Maney wrote that a truly successful product provides either the richest user experience (fidelity) or the greatest convenience. Less successful products fall into what he labeled the fidelity belly, “the no-man’s-land of consumer experience,” characterized by commercial apathy, insufficient fidelity, and insufficient convenience.

Apple succeeds in the consumer computer market by providing the richest pre-sales experience in its retail stores. Dell and HP succeed by providing an ultra-convenient pre-sales experience online. Who is in the belly? Everyone else.

Sinking into the fidelity belly is essentially the fast track to obsolescence. Staying out of the belly is never assured, because customer expectations for fidelity and convenience constantly evolve.

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6 Reasons Why The Album Format Died

I think it’s safe to say that we’re at the end of the “album age,” and although the format will hold on for a while, it’s clearly waning in popularity. I’ve given this a lot of thought and have come up with what I think are the reasons, but be aware, they’re not all exactly what the popular wisdom assumes. So let’s begin with the 6 reasons why the album format has, for all intents and purposes, died.

1) It was a visual experience. The album format in the vinyl record age had the advantage of that wonderful piece of cardboard known as the album jacket. The album jacket contained the cover art (still found on CDs), and most importantly, the liner notes on the back, which we’ll get to in a second. But one thing that everyone either forgets or has never experienced is the fact that millions of albums were purchased completely on impulse because of the album artwork alone!

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The Stream that Snuck up on You

Have you noticed that you’re streaming more audio and video? That your purchase of CDs and DVDs has dramatically decreased? That your DVD cabinet and CD racks have a layer of dust on them (literally, or otherwise)? That your digital CD/DVD cabinet (i.e. iTunes) is being opened less frequently? (Apple knows this, by the way, it’s why the new AppleTV has no hard-drive; it’s all streaming…really think they’re not going to do the same for music?)

We’ve started up the Kurzweil Curve with respect to streaming, and it’s only going to accelerate from here.

The interesting thing is that, because the transition has been relatively gradual, you probably haven’t noticed that this radical behavioral and technological change has occurred. You haven’t noticed because it hasn’t hurt; in fact it’s felt good.

There are opportunities here. For content creators, the sooner you reconcile the fact most people aren’t likely going to want to own a digital copy of your music/movie/tv show/book (let alone a CD, etc.), the sooner you can devise profitable streaming models.

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The End of the Music Album as The Organizing Principle

It doesn’t seem that long ago since Radiohead did what was once unimaginable - release an album without being signed to a major record company. On the long march to digital ubiquity as the means of music delivery Radiohead avoided the tar pit that seems to be major label thinking and came out clear winners. Yes, they resorted later to releasing the album as a good old CD into regular retail distribution but they were pioneers and were soon followed with great success by Nine Inch Nails and to lesser success by many others. Both these bands had an understanding of what their fans wanted [price level choice, quality and special packaging] and both bands understood the power of the internet for marketing purposes and direct reach. [NB: Although I believe that the digital music file will rule the day, vinyl still has a role to play and I’ll get to that later.]

The most interesting part of this experiment [which at the time, I would argue it was] was not only that it was wildly successful but it laid the groundwork for what I have coined the end of the organizing principle. In other words I suggest that we are now seeing the end of the album-length work as the permenant work, the everlasting body of work that represents the pinnacle of an artists’ creativity. I am fully expecting to hear the howls of derision over this but bear with me.

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