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Jon Peltier

The chart makes it look as though digital songs are more than making up for the drop in CD sales. However, the chart's comparing apples to oranges.

The value axis is measured in Units. A CD contains multiple songs, perhaps 10-12 is typical (the sole exception I can name is Thick as a Brick). A digital song would be 1 song. If I divide the units of digital songs by a rough figure of 10 to 12, it seems that the total units of CD + Digital CD-Equivalent would be nearly flat.

If the value axis were measured in $ Sales, it would make a better comparison.

The analysis is distorted by the different maginal cost of producing a music download compared to manufacturing another CD, and by the buyer's option to buy only a few digital songs rather than an entire CD.

Chris

Probably the best unit of comparison would be to break things down to royalties for the label & the artists. If it is only the supply chain (packaging, retailing) of CDs that is hurting, then it is the supply chain's problem to find more product to move, not the music industry's problem.

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