CDs To Be Dead In Five Years?

TThe HMV executive, Simon Fox, has told The Sun (via Gigwise) that the CD market will drop from £900 million ($1.4 billion) in 2010 to £300 million ($475 million) in 2014.

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He believes his retail chain, famous for its logo of a dog peering into a gramophone, will finish stocking CDs by 2016. “There will be a place for CDs, but it’s difficult to see out more than five years,” he said.

CDs reportedly reached their sales peak in 2004, but with the growing popularity of digital stores like Apple’s iTunes, and illegal downloading, CD sales began to falter.

It is hard to imagine how a high-street store like HMV will keep their doors open when digital stores have already carved a space online, and it could be difficult for ‘traditional’ retailers to enter the new marketplace.

However, HMV have a plan. In preparation for their uncertain future, HMV will re-focus their shelves and increase their stock of MP3 players, headphones and other technology products to account for 25% of their product range.

What do you think? Will CDs and their high-quality audio keep a place on your shelves, and will you keep releasing your music on CD? Or will you drop it all to go digital?