In the era of streaming, more and more music lovers are reaching for music on physical media, and vinyl records are a perfect example of this. The renaissance of record players and records has been going on for at least a decade. Vinyl pressing plants are working at full speed. Even the largest record labels are resuming production, and for artists releasing a new album, the lack of an LP version is a huge oversight. The once-forgotten format has now become one of the main sources of revenue for the phonographic industry. Seeing the growing popularity of vinyl records, some experts began to predict, somewhat mockingly, that sales of compact discs would soon increase as well. A few years ago, this seemed impossible, but now it has come true - for the first time in many, many years, an increase in sales of CDs has been recorded. New players are also appearing on the market, from the simplest, portable ones to the most advanced ones. Defenders of the forty-year-old format are rejoicing and cheering. Could this be the start of a new revolution, or just a false alarm that ultimately changes nothing?
Read all about the Hegel Viking CD player here.
The fuss about compact discs that we are currently witnessing began, of course, with the publication of several reports on music sales statistics, taking into account various sources and media. Even the people responsible for preparing these documents probably expected to see an increase in revenue from CD sales. CDs have been systematically disappearing from store shelves for a good twenty years, first replaced by MP3s and later finished off by hi-res files and streaming. Why did something suddenly vibrate? At first glance, it's hard to say. Turntables and vinyl offer different sensations that we won't experience when listening to digital recordings. The large covers, the whole ritual involved in playing, or the unique analog sound are just the beginning of the story. CDs are not as unique and appealing, and the performance of the recorded signal is in theory inferior to good streaming services. It doesn't make sense, and yet the news of the rise in sales of the good old compact discs has gone around the world, even making its way into the mainstream media. Is it time to go to the attic in search of silver discs, dust off your old CD player, or shop around for a new one?
From dominance to decline - the history of the CD format
The official premiere of the Compact Disc took place on August 17, 1982, in Langenhagen, at the PolyGram factory, then owned by Philips. On October 1, 1982, the Sony CDP-101 player was presented to the world in Tokyo. In addition, several other players appeared in Japan, such as the Philips CD-100, Yamaha CD-1, Hitachi DA-1000, and Marantz CD-63. In Europe, equipment manufacturers adopted a somewhat more cautious strategy, and the new format did not really take off until March 1983. In terms of customer comments and impressions, it was initially so-so. Audiophiles were not convinced by the sound of silver discs. They considered it too dry and technical. Compact discs did not offer the fluidity that vinyl music lovers were used to. There were also problems of a purely economic nature. People complained about the high prices of records and players. Sellers also had doubts, because such a situation meant double investments - owners of music stores and audio equipment stores had to stock up on players and both CDs and LPs.
Everything changed in early 1985. This period is considered to be the real beginning of the dominance of compact discs over vinyl. Sales grew so quickly that PolyGram could not keep up with the demand for silver discs and had to expand its operations to meet the growing interest in the new format. In 1982, the company produced 400,000 compact discs, a year later it was already 6 million, in 1984 - 13 million, and in 1985 production exceeded 25 million copies. When a year later it managed to double this result again, PolyGram was producing about a third of the compact discs worldwide, becoming the market leader (second place was taken by the Japanese pressing plant CBS/Sony).
Throughout 1986, compact disc manufacturers were unable to meet rapidly growing consumer demand, despite global production already exceeding 60 million records. Some companies claimed that they could easily sell up to 30% more albums if only they had sufficient production capacity.
CD player sales also grew faster than originally expected. In 1985, about 5 million devices designed to read 12 cm discs were sold worldwide, but a year later this number was doubled. Such rapid growth meant that every self-respecting company that hadn't done so yet was now working hard on its first "source of the future". At one point, this even led to an overproduction of players, but this was offset by the skyrocketing sales of the discs themselves. Throughout 1986, compact disc manufacturers were unable to meet rapidly growing consumer demand, despite global production already exceeding 60 million records. Some companies claimed that they could easily sell up to 30% more albums if only they had sufficient production capacity. It wasn't until late 1987 that supply caught up with demand. CD was unstoppable. In 1989, compact discs accounted for 80% of all audio media sales, while vinyl's share dropped to 12%.
The golden era of CDs lasted until the late nineties. Then, something in the world shifted. Some believe that the beginning of the end of the Compact Disc format was the spread of MP3 files, but in reality, sales of records began to slow down even before the MP3s became so popular. Silver discs, whose results began to fall rapidly, dragged the entire phonographic industry with them. The industry was reluctant to switch to files, although the format, disliked by audiophiles, clearly indicated a direction of development that had to be considered. Streaming also failed to overcome the crisis. The statistics speak for themselves. In 2008, 134 million records were sold in Great Britain. Ten years later, the counter stopped at 32 million. British specialists announced that the definitive end of the CD format was coming. Music lovers began to prefer the convenience of having thousands of songs at their fingertips instead of physical media. The introduction of the SACD format in 1999 did not change anything in this matter. The new discs could store much more data, and therefore the quality of the music recorded on them could be much higher. For customers, however, this was not a good enough argument to buy new equipment and gradually enrich their collection with new, better records. How does this decline look in numbers? In 2002, CDs accounted for 92% of total music sales revenue in the US. Twenty years later, in 2022, it was only 3%.
Are compact discs no longer relevant?
The fact that compact disc sales would bounce back was a dream for many years for people who swapped their vinyl and cassette collections for CDs in the 1980s and 1990s. If record players and vinyl records have come back into favor, why shouldn't the same happen with CDs? At some point, even cassette tapes became a desirable commodity. Heck! Tapes for reel-to-reel tape recorders and even Edison cylinders are also sold on auction websites. There are also many media and formats that either never became widespread or were replaced by other, more promising ones after the boom. Suffice it to mention DBX and CX records, DAT and DCC digital cassettes, or MiniDiscs. These were really interesting inventions, but the pattern is always the same - once a given technology begins to fade, it will probably never come back. The only exception to this rule is the growing popularity of vinyl records. But can compact discs repeat this feat? Do they have advantages that we have only just begun to notice?
Read more about the Hegel SynchroDAC technology here.
The fundamental strength of the Compact Disc format is the fact that it is the last popular physical music carrier used by record companies and artists. Even when users began to turn away from the good old CDs, sell their players, and move their physical music collections to the basement, the music industry defended the silver discs, because the only alternative was streaming, which brought in much less income. However, the desire for profit was not their only motivation. Most people working in the music industry have become accustomed to the fact that a new record means, well, a record - something tangible, and not the content itself - a musical signal that can be distributed in any way. Wanting to release their album in a form that would allow them to, for example, send it to journalists and radio stations, sell it at concerts or simply give it to someone as a gift, artists had only two options to choose from - CD or vinyl. The latter is unfortunately expensive and impractical, and until recently there was little chance that the person receiving our disc would have the equipment to play it.
One of the reasons why sales of compact discs have taken off is also because they are convenient and easy to use. Just insert the disc into the player and press "play". There are no crackling sounds and there is no need to change sides frequently, as is the case with vinyl. Moreover, if we take proper care of our CDs, they will last much longer than black discs, which are damaged not only by frequent playing, but also by dust, moisture, sunlight, too high or low temperature, and even storing them in the wrong position. Meanwhile, CDs are handy, durable, relatively idiot-proof, and can be taken, for example, in the car. As long as we are careful not to scratch, break or bend the disc, nothing bad should happen to it. The lifespan of compact discs is estimated at about 100 years. This time depends on the quality of the production process and there are known cases where an album stored in ideal conditions was no longer suitable for playback after a few or a dozen years, but even assuming that the data will remain intact for 40-50 years, for most of us this is equivalent to "it will serve me for the rest of my life".
In the bastion of the Red Book followers
Compact discs have found many defenders among music lovers and audiophiles. For them, the whole issue is not reduced to a discussion about the technical parameters of the format itself. A CD is not just a piece of plastic, but a carrier of memories, emotions, and fragments of culture that can escape in the era of the digital revolution. CD collectors remain faithful to their hobby, creating huge libraries that have not only material but also sentimental value. If someone also has an expensive player, appropriate, custom-made shelves, accessories for caring for silver discs and their packaging, such as special cleaning cloths, the musical hobby becomes a large part of their life.
The economic aspect is also important. Here is a simple calculation - let's say we started collecting compact discs around 1990 and on average bought 5 discs a month, each for about 10 euros. After such a time, we will have over 2,000 discs, and the total expenses incurred will amount to about 20,000 euros. Looking at the collections that many music lovers have today, this is a very conservative scenario. In some cases, we are talking about entire rooms decorated with shelves of silver discs from floor to ceiling, and since many of them are special editions, audiophile pressings and collector's editions, the value of such a collection of records is more likely to be in the hundreds than tens of thousands of euros. Some music lovers have several different versions of the same record in their collection. Throw it all in the trash because someone said that now we will all listen to music from the Internet? Not a chance.
Some music lovers have several different versions of the same record in their collection. Throw it all in the trash because someone said that now we will all listen to music from the Internet? Not a chance.
From the point of view of an audiophile, a significant factor encouraging people to stick with CDs is also the sound quality offered by the players. According to some experts, this is because, unlike DACs and streamers, which have only recently reached an advanced stage of development, this technology has been fully mature and refined for a long time. The first CD players were criticized by audiophiles. It was said that it was a victory of convenience over sound quality (doesn't that remind you of something?). Later, however, players - especially their digital section - became better and better. Over the years, both surprisingly good devices aimed at a wide range of music lovers were created, as well as high-end machines equipped with complex mechanisms and electronic circuits that many of today's DACs and streamers could envy. For a while, even portable CD players were popular, although the idea of replacing a cassette tape with a larger disc requiring precise laser reading seemed doomed to failure. Nowadays, few people listen to compact discs on a walk or in the car, but at home, it's a different story. For enthusiasts playing music at home, the Compact Disc still reigns supreme, being the basic source of music in many a stereo system.
For more information about Hegel's historic CD players, check out the CDP2A, CDP4A and Mohican.
Trouble in streaming paradise
Although it was files and streaming that brought CDs to the brink of collapse, the recurring problems associated with this way of listening to music may now be the catalyst for more music lovers to return to CDs. Streaming services offer huge libraries of music at the touch of a button, but they have a number of flaws that have not been resolved over the years. Their resources are a real mess. Studio albums labeled as live albums or compilations, albums by bands with a similar or identical name assigned to the wrong artist's profile, the complete lack of profiles for many artists (as if they never existed), multiple duplicate albums or the separation of each version of an album into separate entries in the discography - these problems plague all streaming services. The problem is particularly big when it comes to properly cataloging classical music. Another common problem is the lack of compatibility of a specific service with the device we own. In order to switch from Spotify to TIDAL, many audiophiles simply had to replace their network player with a better, more modern, and also more expensive one. The obvious downside is that all streaming services require a fast, stable internet connection. This is problematic for those with low data caps and slower connection speeds. If you have a slower connection or want to listen to music on the go, you're in for a nasty surprise.
However, all of this pales in comparison to the biggest downside of streaming services - the lack of guarantee that you'll always have access to a specific album or song. This is because streaming platforms don't actually own any of the music. Instead, they have to license the music they host from the record labels and artists. If the license isn't renewed or is revoked by the rights holder, the music will be removed from the platform, making it unlistenable. This can happen at any time and without warning. Even if you've listened to a particular album over and over and added individual tracks to your playlists, one day all of that content could simply disappear, leaving behind only faded titles. Most often, the entire output of a selected artist disappears from the service's library at once, but there are also situations when only one album or individual, random tracks are unavailable in our geographical region (which should be understood as "there was a problem with the license, someone did not pay someone, or maybe there is even an ongoing lawsuit"). Supporters of physical media do not have this problem. Once we buy a record, it is ours and we can play it until it is suitable for use.
Has there never been a better time to buy CDs?
In the early days, compact discs were very expensive. This was to change as the popularity of the new format grew. Record companies assured buyers that eventually the scale effect would kick in and prices would fall. 10 euros per disc was the target price point. Needless to say, this did not happen as long as the Compact Disc was the undisputed leader in terms of music sales. Later, as interest in records waned, incredible things began to happen. Prices began to fall - at first slowly, timidly, and then quite rapidly. It even got to the point where a new record could be bought for less than 10 euros, and if someone had an eye for a sale, they could get new albums for 3-5 euros. Currently, the level of 10 euros per record is very real for new releases, unless we are talking about special editions or audiophile editions. This works in favor of compact discs, especially when compared to vinyl, where prices of 50 euros per album are not uncommon. This makes compact discs more tempting for those who want to collect music on physical media. Many music lovers believe that there has never been a better time to buy CDs. Looking at the current prices of records, it is hard to disagree.
Is the comeback of CDs due to young music lovers?
In discussions about the comeback of compact discs, it's often said that Generation Z is driving this trend. Many in this generation remember CDs only from their childhood, while some have never used them at all. Why would they suddenly show increased interest in this format? Nostalgia? Fascination with technology that passed before they had the opportunity to familiarize themselves with it? There may be something to it, but these are not good enough arguments to suddenly start buying records and equipping themselves with the gear needed to play them. There is no specific data on this yet, but it seems that the reason is very simple - streaming is too easy and not very engaging, vinyl is very expensive, and CDs are something in between, giving you the opportunity to collect music on a good, physical medium, but not emptying your wallet completely. Even if money is not an issue for someone, you often have to wait for vinyl, hunt for it on the day of the release, or order it in pre-order. It is a demanding sport that can get boring after a while or even start to irritate you when, despite your efforts, you are unable to buy another rare record because it was sold out in a minute. Meanwhile, CDs are rather available and cheap, and if you like looking for rare releases or albums that are not available in stores, rummaging through bazaars and online auctions will give you a lot of fun. Because, at least for now, you have a much bigger chance of striking CD gold than if you were looking for vinyl treasures.
Here is our new CD player. Wait, what year is it?
The audio industry did not wait long to respond to the surprising CD sales reports from 2021. After many years of stagnation, more new CD players and transports began to appear on the market. The Hegel Viking being one of them. The introduction of new players to the market may not be so much a reaction from manufacturers to reports on increased sales of records, but rather an attempt to keep this format alive for people who have been using it for a long time and want or simply need to change equipment for better from time to time. CD players, although they are no longer as popular as they once were, still have their group of loyal users. Such people often look for ways to improve the sound quality of their stereo system, and the larger the collection of records they have, the more sense it makes for them to invest in a new player. It is no coincidence that a large portion of the machines introduced to the market are high-end designs, aimed at experienced and affluent music lovers.
The main problem for hi-fi manufacturers is the limited availability of drives. In the heyday of compact discs, designers had a variety of ready-made products to choose from, from cheap "computer" drives to more advanced mechanisms from companies such as Philips, Sony, and TEAC. Now the choice is small, but as you can see, where there's a will, there's a way. An example is Hegel and the model with the telling name Mohican. It was to be the last CD player Hegel ever made. It was planned to in production as long as customers were interested in buying it, but at some point, Hegel had to pull the plug because the key components for this model were no longer manufactured. Since then, the Norwegian manufacturer has been working on a successor to this valued device, and so the Viking was born, introduced in 2023 - the best CD player in Hegel's history, visually matched to the flagship P30A/H30A combo. It is therefore clear that these are not actions aimed at attracting young recipients, getting them interested in compact discs, but rather a nod to the old hands who have never abandoned this format.
Conclusion
CDs have been a staple for the music industry, record lables, collectors, and those who value the tangible aspect of owning music for over forty years. For enthusiasts, collecting compact discs is not just about the data recorded by the laser, but about the physical format, the album artwork, and the sense of security associated with owning your own medium that will not disappear from the shelf in your home the next day because the owner of the application does not renew the license for it. Some argue that the sound quality of CDs surpasses that of streaming, offering a richer, more detailed listening experience. Given the success of CD conversion in the 1990s, many of us now have too many CDs in our collections to ever abandon them completely. There are many arguments for continuing to use the format, or perhaps even taking an interest in it from scratch. The spectacular return of turntables and vinyl records certainly gives food for thought and leads one to believe that compact discs will also be rediscovered by new generations of music and stereo lovers. Will this really happen? And if so, what will be the scale of this phenomenon? Only time will tell.
