Why Your Credit Card Will Soon Follow the Audio CD
(AdAge) — Remember the old audio CD? That round piece of plastic holding 15 songs — two of which you actually wanted to hear? While many of us still use and occasionally buy CDs, I suspect we can agree that with iTunes as the world’s-biggest music marketer, the CD’s glory days are over. The audio CD represented an unconnected world, in which physical manifestation and distribution were needed to get the music bits and bytes to consumers. As we now know, digital networks disrupt business models by turning atoms into bits, and we also learned that the marginal cost of digital distribution is zero. All this led to massive disintermediation that made the physical CD product — and the entire distribution system built around it — completely obsolete.
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