Just as CD's replaced LPs, digital (both mp3s and streaming services) are replacing CDs:

While overall music sales were up 10 percent in 2008, the year saw a drop not only in CD sales, but in the number of customers actually purchasing music. But according to a new report, the act of music listening is actually on the rise. While digital music purchases remain strong, the numbers show that there is still much more work to be done in the industry's transition to a new, more diverse set of business models.

Services like Pandora are the new radio. I have Pandora on about 50% of the time now, and my iTunes collection on the rest of it. I listen to things like podcasts when I'm exercising. The good news is, we seem to have passed through the denial stage of this transition (where DRM was seen as the way to go), and onto something like acceptance.

Over in video land, denial is still king - but as consumer level bandwidth improves, I think we'll get to see the same kind of dynamic play out there.

Technorati Tags: drm, business models