The Null Device

2010/4/20

The decline of physical media continues, as one of Melbourne's larger and more long-lived independent labels abandons the CD format; from now on, Rubber Records (home to Underground Lovers, among other acts) won't actually sell records but only digital downloads.

“Physical retail distribution is dictated by a business model that no longer works for either the customer, the artist or the label,” Rubber MD David Vodicka said in a statement. “It’s also anti-competitive. We can’t sell-in direct to the biggest national retailer JB Hi Fi, we have to go through a third party distributor with an account. Distributors take a minimum cut of 25 percent, and we have to pass that onto the consumer. There’s no point in engaging in this model as it currently stands. We’ll consider it in the future, but only if it works for us."
A final liquidation of stock is planned for 15 May.

(via Greg) economics media music the recording industry 2