Major labels plan to phase out most physical CD's by the end of 2012 according to Side Line Music Magazine citing multiple unnamed industry sources. Only premium CD's would be manufactured according to the report; with most of those sales online rather than at brick and morter stores.
The demise of the CD would be catastrophic for what remains of music retail and severely hurt sales in some genres slow to adopt digital, like country. Which is why I an not buying this story
. Physical CD sales may be shrinking, but until they disappear, the major labels are in no position to eliminate any source of revenue.