Chapter 7
The first obstacles : The record companies would not want to produce multiple versions of the same music, nor would the potential manufacturers of disc players be as eager to get involved without some guarantee of a large market
The second potential obstacle was the relationship between cost and price. To be successful, the compact disc would have to be offered at a price that would be sufficiently competitive with the alternatives to attract enough customers to make the business profitable. The disc player would also have to be available at a price consumers would pay, The more difficult question was the cost of putting the music on a compact disc and moving it down the distribution channel until it reached the ultimate buyer.
Demand and Supply
Within the U.S. market, they bought around 25 million records in 1979, less than 10 percent of the total number of LPs sold. As a group, these listeners had already shown a willingness to pay a 30 percent premium for digitally remastered records
The executives estimated that it would take around five years before even half of this market made the move to compact disc. They figured that annual demand would exceed 18 million discs by the third year after introduction and 120 million by the seventh year.
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