Unfortunately, CD's are on the way out - although I doubt they will ever disappear completely.   MP3's have improved the quality issues with higher bit rates, although they are still not as good as CD's. MP3's compress the audio, and you lose data which results in an inferior product. There are other lossless file formats such as FLAC that are superior, but the file size is generally larger and I don't see it being adopted by consumers.

CD's face tough competition from MP3's because the largest segment of consumers prefer the convenience of MP3's over the quality of CD's. It is very easy to transport large collections of music on an Ipod or similar MP3 player.   While most of us here on Mudcat enjoy the information in the booklets that accompany the CD, items like liner notes are lost on modern consumers of commercial music.

Rounder entered into their arrangement with Concord as a way to survive. Most of their titles sell in the hundreds, not the millions that the Wallmarts of the world look for.   Finding retail outlets is not an easy task for companies like Rounder.

I do believe that the specialist trade will survive, but it is going to be a different business model than what we are used to. Producing a CD from a desktop is within the reach of most people these days. Finding quality will always take a special ear. Reaching that audience will take new ideas and new ways of distribution.