By 2020, we’ll be able to buy vinyl and other digital music formats at the same price, and it will also be cheaper and faster to make digital copies.
But vinyl-like products are still just a tiny fraction of the market, and the price increases will be slower and more gradual than those of today.
The major changes will occur at the digital level, as vinyl becomes more expensive and harder to make.
For the first time, the price of a digital file will rise by about 25 percent.
In addition, music will start to be streamed on streaming services like Spotify and YouTube.
And it will become easier to make CDs and vinyl copies.
As more and more people buy digital music, they’ll start to save more and save less.
That will mean fewer people will be buying digital music and fewer people are buying physical CDs.
The cost of buying digital CDs will also drop, because digital downloads are often cheaper than physical CDs, and CDs have been around for much longer.
That’s why the cost of digital downloads is going down so quickly, said Chris Pfeiffer, an analyst at Morgan Stanley.
But for the vast majority of people, buying digital copies of physical CDs will remain cheaper.
And that’s where the biggest price spikes come from.
The average person will pay $1,000 more per year to buy a physical CD than they will pay to buy digital copies, according to the research firm NPD Group.
Digital downloads are more expensive because the physical copy costs more to make, so the consumer pays more for the digital copy, too.
The price increase will come as people are forced to choose between physical CDs and digital downloads.
Purchasing physical CDs for $1 million and $1.5 million, respectively, will make a consumer feel wealthier, said John Aaronson, an economist at RBC Capital Markets.
But consumers are buying CDs because they have to, said Aarenson.
And because digital copies are becoming more and the cost for buying CDs is going up, that means that CDs are becoming less valuable.
That means more people will want to buy CDs than digital copies.
“It’s a vicious cycle,” Pfeifer said.
The price of CDs will drop, but digital downloads will continue to rise.
So the consumer is going to choose physical CDs or digital downloads, he said.
And consumers are choosing to buy the latter, he added.
That is, consumers are willing to pay more for digital copies than they do for physical CDs because the costs are lower.
And the consumer will be willing to save a lot of money, Pfeffer said, because the consumer doesn’t want to have to spend a lot on physical CDs if they can save a small amount of money by purchasing digital copies for less.
The biggest impact will be felt at the retail level.
The typical consumer spends between $300 and $400 on CDs every year, according a report from Bernstein Research.
But the average digital download costs $50.
The amount that a consumer spends on physical copies is much lower, said Mark Schmitt, an investment analyst at Credit Suisse.
In the future, the consumer may opt for physical CD-like purchases over digital downloads because they’ll save money, he explained.
But as consumers choose digital downloads over physical CDs in their shopping carts, they will be forced to pay a higher price, Schmitt said.
Pfeiffers said the consumer won’t be willing and able to save the extra money by shopping in the physical store.
He said that will happen as digital downloads start to become more popular, which will lead to less purchases of physical copies.
The reason the consumer might be willing or able to spend less money on CDs than they would for digital downloads and other forms of digital distribution is because they don’t like paying the high price of physical CD copies.
They don’t want the hassle, he noted.
And they also don’t buy physical CDs to sell, either.
The consumer’s buying behavior will change, but the price will be lower, PFeiffer said.
“I think the consumer probably will be able just as quickly go buy the physical CD and then spend a little bit less,” PFeifers said.