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I don't see CD's going away for the same reason that vinyl is sticking around. Some people are attached to the medium, for the very reasons listed. At the same time, anything that puts more control back in the hands of the artists is good.
One of the huge advantages of digital distribution is that it drastically reduces costs. In particular, it scales quite well; it doesn't cost much more to produce and distribute a thousand copies than it does ten copies. This reduction in overhead allows artists and labels to innovate and take risks, since the cost of failure is so much lower.
The biggest surprise to me so far is how long it's taking. Nobody's moved into this space in any real fashion yet, and my hunch is that the first party that does stands to gain a lot, both in terms of notoriety and profitability.
Again, I'll definitely be watching closely
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I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said
- Ben Harper, Show Me A Little Shame
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