Tuesday, November 08, 2011
The Death Of The CD Creates Another Industry
What was once breakthrough technology is now on its way to the grave. Because music is now being produced, manufactured and delivered digitally, protecting original ownership is creating another industry.
Digital watermarking is becoming a very sought after service.
One of the investing waves I discuss on the book How To Find Big Stocks is "digital asset management". New technologies will enable any digital content owner to protect unauthorized reproduction.
The major record labels are planning to kill off the CD format by the end of next year to make way for digital downloads only.
That's the claim made by music site Side-Line which says it heard whispers that the end of the CD is nigh from music industry insiders. (Source Reghardware)
To prevent theft, record labels have already started to place watermarks in the songs which allows them to trace any illegal copies on the Net.
When labels discover an unauthorized copy of a song which they had previously given distribution rights to, they are able to use the system to find the identity of the person that made the copy.
I see the video and software industries adopting this next.
I discovered a company with key intellectual property around this technology and record labels have already adopted it. Email me if you want their story.
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