The CD Celebrates Its 25th Anniversary! Ho-hum…

Yeah, that’s right–CDs have reached a milestone–25 years. I think it’s fair to say that we won’t be having a 50th anniversary celebration, and my bet is that ten years from now we’ll have an easier time cloning a Dodo bird than digging up a CD. And the demise of this once-popular digital format may happen much sooner than we think–as the article states, 553 million CDs sold last year, down 22% from the peak of 712 million in 2001. In an age of 80 GB iPods and iTunes music downloads surpassing 3 billion, more music is being consumed than ever before.

Let’s not mention the growth of illegal music downloads…

It’s obvious that the world has quickly passed the point where there’s any value in carrying around music on disc. Up until two years ago I might have burned hundreds of mp3’s on a CD and played those on a laptop or something, but music is now so pervasive to the point where you don’t need to keep it in multiple places. Plug in your iPod into your car, stream your iTunes music through the home, and store more music than you could ever possibly listen to on a 500 GB hard drive.

Although it was revolutionary at the time, 700 MB digital storage capacity is now a joke. And, don’t let the audiophiles sway you with music quality concerns of mp3s or the demise of CD cover art or lyrics. The world has changed, and music is now convenient and quite listenable–anywhere you might be, and through any means imaginable. And if you want the album art, iTunes has it ready for you.

Wither the CD? You bet, just like the vinyl LPs that preceded it. DVDs are next, and printed books after that. As you know, I work at Lulu, and we’re definitely thinking about it. Everything will go digital–it’s just a matter of time.

Disruption is good, especially for consumer…

HBH

Blockbuster, we hardly knew ye…

Maybe it was too good to be true, but the idea of receiving DVDs in the mail and returning them at a local store for more free DVDs got me to switch from Netflix to Blockbuster Online. By browsing on their website I could rent the hard-to-find DVDs–classics like “I Married a Monster From Outer Space,” or “Destination Mars”–, which I’d receive in the mail and view at my own leisure. When I was ready to return them, I could drive down to the Blockbuster at Cameron Village and exchange them for more current titles–all I wanted, for free. What a deal!

Blockbuster had a tremendous offering, or good enough for me to switch from NetFlix, anyhow. As a matter of fact, during the latter days of my Netflix relationship I was feeling uncomfortable because I felt that they delaying movie rentals to keep my monthly activity down. I’d send a movie back to them on Monday, and it was Thursday or so before they said they had received it, and I wouldn’t receive my next title until the following Monday. Where’s the fun in that?

So I was happy when Blockbuster came along, and praised the model–it seemed to be a slam dunk, customer-focused solution.

I’m not so happy anymore…

Because, I think they’re now playing the same Netflix game, and playing me for a fool. Recently I’ve noticed that my returns lingering a little longer “at the store,” delaying the cycle of replacement rentals coming my way. And now comes this note today, from Blockbuster:

Dear Henry, Due to changes in our subscription plan pricing, your current BLOCKBUSTER Total Access™ plan, Unlimited Online DVDs up to 3 at a time plus unlimited in-store exchanges each month for $17.99, will no longer be available at the current price. You will be moved to our new plan that includes Unlimited Online DVDs 3 at a time plus up to 5 free* in-store exchanges for $17.99. This plan will not include an e-coupon for in-store DVD and/or game rentals. The new subscription plan and pricing will go into effect on your regular monthly billing date following August 31, 2007.† In addition, exclusively for BLOCKBUSTER Total Access customers, we have introduced in-store movie rentals for $1.99* per movie should you need more than the in-store exchanges included in your plan. If you don’t feel this plan is right for you, please feel free to take advantage of one of these other options:

So I guess it was too good to be true, right? Now, to receive the same level of service I’m used to, I’ll need to pay $24.99 instead of $17.99. That’s quite a hike, and something I wasn’t prepared for. Of course, I could stick with the $17.99, receive fewer free in-store exchanges, and then pay the $1.99 for additional rentals. In essence, I’ll pay the same for down-graded service. That sucks.

I really think this change reflects badly on the goodwill that Blockbuster has earned with their current subscribers, and I guess I’m more disappointed than anything about this move. Blockbuster has done a lot of things right–like getting rid of late fees–but they’ve now received a black mark in my book. DVDs are getting cheaper, there’s more competition out there for online rentals, Amazon’s unBox isn’t half bad, and iTunes movies and TV shows are looking more attractive every day.

I’m not sure Blockbuster thought this one through for the long term…

Henry