Product Life Cycle of Compact Disc Essay

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Pages: 5

Product Life Cycle of Compact Disc

Compact disc technology is one of the fastest growing industries of all time. Compact discs became popular in the early 80’s due to its ability to offer increased audio performance over traditional magnetic recording media. In 1983 over 30,000 players and 800,000 discs were sold. By 1990, this number had grown to a staggering 9.2 million players in the U. S., and close to 1 billion discs worldwide. In 2004, the annual worldwide sales of CD-Audio, CD-ROM, and CD-R reached about 30 billion. Today, Sony DADC is the leader in the industry and produces about 410 CDs per day and ships up to 6.4 million discs daily. Compact disks are majority used for storing music.

Life Cycle Stage
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In comparison, sales of music DVDs increased by 58% in 2003.

4. Saturation and decline stage (From mid-2000s to Present)
The compact disk presently is in Decline stage. In this stage market will see drastically down words change in the unit sales. This happens due to new product entry, obsolete of technology and cost factors. In music storable compact disk industry is in decline phase. The existence of product will be for very less amount of period .The product is phasing rivalry in its market with the other storage devices, such as DVD, USB drive, i-Pod, internet and smart phones.

The continued decline of CD sales caused worldwide music sales to dip 10 more percent in 2009, the International Federation of the Phonographic Industry (IFPI) said in a statement. Additional IFPI numbers indicate sales dropped as much as 30% since 2004.

CD-ROMs and CD-Rs remain widely used technologies in the computer industry. The CD and its extensions are successful: in 2004, worldwide sales of CD audio, CD-ROM, and CD-R reached about 30 billion discs. By 2007, 200 billion CDs had been sold worldwide. Compact Discs are increasingly being replaced or supplemented by other forms of digital distribution and storage, such as downloading and flash drives, with audio CD sales dropping nearly 50% from their peak in 2000.

As the technology develops, more and more substitutes