Sony CD will close its factory in New Jersey (United States) to declining sales attributable, among other reasons, the increase in digital downloads. The factory, established 50 years ago by the Columbia, is dedicated to the production of vinyl records and CDs. The closure will mean the layoff of 300 workers.DVD production had been transferred to another plant in the United States. The CD production is maintained in this second plant in Indiana. "In light of the current economic environment and to the threats facing the hardware industry, Sony has taken further steps to reduce costs and maintain competitiveness," the company said in a note.
The factory was capable of producing 18 million CDs per month. While vinyl sales have grown, the CD decreased year by year. Between 2008 and 2009 did 18%. Cnet wonders whether this news is a further indication of the end of the hardware. The CD began to be mass-marketed in 1982 by Philips and Sony.
His arrival was a good deal for music distributors and customers to renew their discography on vinyl. The industry relied on this platform for the music industry and introduced anti-copy systems. But the world of downloads has been shown to be ineffective. Moreover, the digital music market offers the opportunity to purchase a single issue while the CD impose the acquisition of an entire album.
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