MP3 Insider: CD price drops coincide with MP3 hardware breakthroughs – CNET reviews
Finally and grudgingly, the labels likely agree with the Forrester analysts who say that CDs are a doomed medium. This might be their last chance to sell shiny discs before consumers move on to pure digital formats. In the future, MP3 players might even be sold much like cell phones are today–as loss leaders for service plans. Perhaps you’ll even get a free iPod in exchange for signing a contract to purchase a certain amount of music from the iTunes Music Store over the next couple of years.