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Replication vs Downloads

It is still by no means certain whether mass-market consumers will embrace the concept of buying all their entertainment digitally rather than on disc – the music sector is undoubtedly undergoing a huge transformation with the majority of singles now sold digitally, whereas most albums are still physical sales.

It is clear that most manufacturers and distributors would want to avoid the cost and effort of maintaining a large inventory, but they would be foolish to ignore the very real attractions of packaged media to the casual customer.

Even in today’s climate of price-deflation and stagnant physical sales, entertainment content still has the power to grab consumers in a way other product cannot, and retailers are putting a lot of effort into enticing impulse-buyers.

Browsing through a display of attractively-packaged boxes is the quickest way to secure a sale, but it does mean that the retailer has to maintain and constantly update their inventory. This does, however, leave the way open to having point-of-sale machines that can burn discs on demand as well as digitally printing the packaging and artwork. The retailer would then simply have a display of lifesize empty boxes for the customer to handle and make his choice from, without having to guess at stock-levels etc.

The technology for this is still some way off, so the market for replicated packaged media is set to thrive for a good while yet, as pure downloads can never re-create the experience of buying and handling a quality retail product.

Piracy

New technology has always been viewed with suspicion when it came to the stealing of copyrighted material, but none of these predictions have ever really emerged as a serious problem:

“Home taping will kill record sales” warned the record companies in the 1970s when copying LPs to cassette had become the norm, but once the Sony Walkman made tapes more popular, the record companies simply sold more pre-recorded tapes.

Copying CDs is also possible, but most people can’t be bothered and, provided the price is acceptable, would much rather buy a nice-looking finished product than waste time making an unappealing copy.

How much material will be electronically “shoplifted” if online sales become the norm is also down to price and convenience – if it’s easy to buy appealing product at attractive prices, and tiresome to steal, customers will pay.

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