October 13, 2002
The Death of the CD. Not.

CNN.com introduces us to two new digital audio formats that have "dead meat" written all over them. While both include improvements over the existing CD audio format, those improvements are so marginal -- and the problems with the formats so numerous -- that their marketplace failure is inevitable.

Speaking as a Tivo owner and addict (but I repeat myself), I'm not normally one to poo-poo new technology. But the creators of these new formats haven't missed a trick in making this technology as unappealing as possible.

The new format discs wil be more expensive than the already-overinflated price of audio CDs. Both formats will include watermarking, a precursor to making it impossible to rip your audio to MP3 format. Neither format is available in a portable player. The differences in audio quality are only percepible under audiophilic conditions: using a 5.1 system, sitting surrounded by the speakers in an otherwise quiet room.

And if that wasn't enough (and it is), there is of course the killing disadvantage: the fact that there are two formats, and neither player will play the other format. Does the name "Betamax" mean anything to anyone anymore?

Predictions: SACD, which requires new gear, will die an ugly death. DVD-Audio will linger on as an audiophile format; since it can play on existing DVD players, it can piggyback on the success of DVD video. But will never come close to replacing audio CDs, let alone MP3s.

CDs may be the last successful consumer audio distribution format ever. If they are replaced, they will be replaced by removable computer media used to store compressed audio data (MP3 or a successor format, such as Ogg Vorbis). CD audio and DVDs are good enough for most people's purposes (especially once we dispense with this MacroVision and region encoding nonsense). And any new formats coming out of the current constellation of media and consumer electronics companies will have insufficient marginal benefits, and too many, too-onerous encumbrances, and will be too much more expensive than online distribution, to become successful.

Posted by Kevin Shaum at October 13, 2002 04:15 PM
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