And about time - bring on TV shows and Movies next. I dont download to intentionally rip off the artists, its all about the convenience, i want to watch and listen when it suits me

You should read "Appetite for Self Destruction" - a brilliant read about just how badly the record industry has handled the shift to digital music, mostly thanks to the CD boom of the 90's/early 00's.

Personally I love my CD collection and would always rather have a physical CD - there is something cool about searching along the shelf, picking something to listen to and putting it in the player. I imagine that's the same reason vinyl enthusiasts still prefer vinyl. With the advent of the likes of JB Hifi (not to mention Amazon given the current NZD), the price differential between physical and digital is actually pretty small over here ($17.99 for a full album on iTunes vs. $23-25 for a new release CD at JB).

While you cite the example of In Rainbows, that did get a physical CD release in the end also. Nine Inch Nails took a similar approach with Ghosts I-IV, and The Slip (a free download subsequently released on CD). I think this highlights that cutting out the major labels and releasing music via an independent digital platform aren't the same thing - you can independently release digital music and CD's.

I have no doubt digital music will become more popular but I suspect there will always be a place for the CD - just as there is still a place for vinyl.

As someone who produces a lot of online audio content I'm not fussed about CD's. They add to production costs (production + shipping). By comparison online material is cost free and has a built in advertisting and distribution system (iTunes) and our website.

I vastly prefer CDs to digital only purchases, even though I predominantly listen to music via iTunes these days. Not only do I like the physicality of a CD, but it also allows me to play the music easily in my cars CD player. I know there are probably workarounds for this (including the FM transmitter we have for our iPods), but I prefer the sound that playing the CD directly offers me.

While I agree that downloading movies and TV shows should be the next logical step, we really need our ISPs to come to the party on this one. Downloading HD video content is pretty much a no-starter with the ridiculous data caps that our ISPs provide. FI, I have a 20GB cap, and use at least 1/2 of that each month without downloading hours of HD video. I can only imagine how much it would skyrocket if I did (FI, I read that BluRay data is approx 17 - 27GB).

I do own an iPod, and have 550+ albums in my iTunes library, but I almost always buy the CD. Having the package, the physical disc, etc. is a part of the experience for me. As is the sound quality. The iPod is handy when I'm on the move, but when I'm home I always put the CD on and turn the stereo up loud.

I do sometimes download the odd track when there's only one on the album I want, but that's actually quite rare.

And "liner notes" used to be worth reading, but that's less and less the case now. These days it's usually just the lyrics and the artist's "thank yous".

Thanks for the great piece Luke. We're actually working with the Mint Chicks to release their EP on a custom made USB stick designed by Ruban. A nice treat for fans who don't want to download and get the files in MP#, Apple Lossless and FLAC. Here's a pic: http://www.flickr.com/photos/musichype/4328446459/

My biggest issue with online distribution is the quality of the product - most material sourced online is of a lower quality than material available on CD. As a business model it's a good idea - but (and it's a big but) only if the actual quality of the material being provided is of a comparable quality to what you can get in the physical format.

I do find it amusing that as technology has improved the actual audio quality of the material has deteroriated.

@ Scott C, I saw an amusing quote recently to the effect that we will be the first generation to actually lower audio quality!

Having said that, the relative advantage of CD depends a lot on what you're listening to it on. If you're just using headphones or small computer speakers it's quite hard to distinguish between a CD and digital, unless the digital is quite a low-quality rip. It shows up a lot more on a good sound system though.

I actually have a preference for my music in a digital format. It doesn't come with any added joy that you'd find with a CD - it's always great to browse through someone's CD collection and find they have the same album you do. I'm on a computer most of the time, though, and it's easier to click through a list than find a CD.

That said, sound quality is the biggest measure for me. I use big headphones (sounds way better than the small earphones), and any music I have will inevitably be played through my lounge speakers via my PS3. It can definitely sort out the low-quality from the mids to the CDs, that's for sure!

I'm all for the digital future if it's high bit-rate MP3 and FLAC... but spare me if it's 128kbps or less. :(

Fully agree with #1.

Bring on purely digital downloads at a lower price than bulky physical mediums. If I buy a DVD, I rip it straight to AVI so it can be played in any room of the house using networked media players (xbox 360 etc). So much easier to navigate a large list on a screen than a massive bookshelf of physical media