Internet Distribution Threatens Music Retailers
"Adapt or die" is the first law of economic Darwinism. It's a choice that many music retailers are beginning to face with the rising tide of alternative distribution channels. According to market research organization Jupiter">http://www.jupiter.com">Jupiter Research, online music services will account for approximately 9% of all CDs sold this year, a 50% increase from 2000. Retailers, once the music industry's only sales interface with the buying public, are looking at what might be an increasingly marginalized future. Those who wish to stay in the game may become "affiliates" rather than independent distributors.