Devoted CD buyers aren't a dying species. At least not in Japan.
While nearly every other country seems to be gradually giving up on CDs, the Japanese remain devoted to the compact disc.
The Japanese spent more money on CDs in 2012 than consumers in any other country, according to figures from the Recording Industry Association of Japan. CD sales actually grew 9% over the year before. Physical media including CDs and DVDs made up 80% of all music sales by value in 2012, compared to just 34% in the United States.
But why? For a country that is home to pioneering tech brands like Sony (SNE), Panasonic and Nintendo (NTDOF), the attachment to physical music seems a bit odd.
Culture plays a big role, according to Kotarao Taguchi, managing director of the Recording Industry Association of Japan. He said that Japanese customers don't just want the music. They also want the liner notes, the cover art and DVD extras.
"I think Japanese people as a nation have a strong attachment to physical goods," he said.
Bands in Japan have learned to cater to this phenomenon, releasing more expensive, limited edition discs with more elaborate artwork and special inserts.
"In Japan, people have a tendency to doubt the quality of products when they are too cheap. They care more about whether it has an official jacket on the CD," said Taguchi.
Intense fan loyalty, a pillar of the Japanese music industry, has also fueled CD buying. For example, local bands release special CD singles that come with free tickets to meet and greet events with the artists...