Virtual Delivery Seen as Death to Discs

CDs and DVDs may be on their way to extinction, even though Hollywood will win the war against illegal downloading, according to a new report from Forrester. The study predicts that in five years, CDs and DVDs will start to go the way of the vinyl LP as 33 percent of music sales and 19 percent of home video revenue shifts to streaming and downloading.

Among the beneficiaries are Internet portals, broadband suppliers and the creative community. Media conglomerates could be among the losers if they do not have control of emerging means of distribution like VOD, Forrester said. Such retailers as Tower Records and Blockbuster will certainly feel the pain as sales and rentals shrink, though they may be able to sustain business by associating themselves with newer on-demand services.