Looks like MP3 will be the successor to CD, not hi-rez.It's a bit early to predict, but I can counter this argument with the following scenario:
1. Market biforcates into two segments: (a) younger, more digital music download crowd that remains satisfied with MP3s - songs sell legally for $1 or less (b) older, or more technical music loving crowd with more emphasis on natural reproduction. Here hi-rez remains the best thing and more titles come out.
2. Record labels realize extra profits on DVDA/Super Audio (herein "hirez").
3. Labels push for more extras and other items only available on hirez. Redbook increasingly part of hybrid releases in either format.
4. Hirez prices lower with more competition, titles proliferate with more case studies and bands on board.
5. MP3 buyers grow up or get more into audio/home theater and decide to spend more money on better recordings.
6. Labels, while disgusted at lack of control of MP3 world, at least enjoy two different profit streams.
Wildcard: All hardware/software makers agree to yet another new single hirez standard based on higher density DVDs.
In this scenario, the MP3 crowd benefits hirez launch since it squeezes out redbook in favor of higher margined product. The high-end consumer wins with more hirez titles and lower prices via economies of scale. The low-end consumer benefits from lower costs and ability to just try a few songs before buying whole album. The record label wins by getting Pink Floyd, Stones, and other supergroup fans to buy new, improved hirez recordings as part of title replacement cycle. Bands win by pocketing more royalty dollars.
Doesn't anyone else find that to be rather expensive?No because the average CD is around $12 and most have around 12 tracks or less, around a buck a song. And you have the convenience of not even leaving your home.
