A sharp critique by Glenn Peoples to the recent and just-mentioned PwC report:
In addition, PWC does not help its credibility by calling Lala a Canadian company (it was based in California before being purchased by Apple). Nor is its report helped by PWC’s reference to Pandora and Slacker as examples of “on-demand” streaming services – both are squarely in the non-interactive streaming camp and a world away from on-demand both in terms of functionality and licensing costs.
PWC’s forecast for physical revenues are more believable – they follow an established trend of roughly 13% to 16% annual declines. PWC believes there is a core group of CD buyers that will help slow annual declines and keep the format afloat. Such a prediction depends on retail’s involvement in the format, but it’s a possible scenario.