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Truth is that in the long run, anything that can be delivered in a digital format will be preferable to a "box" product. Eliminating the reproduction costs, the shipping costs, and the costs of maintaining actual inventory in these stores has got to be a smash hit to the bottom line.
However, I think it is only a stop gap measure before music stores become completely out of date and sink into the sunset. Music distribution is the leading (and bleeding) edge of digital delivery, and it won't be long before those stores are all but useless to the average consumer.
Even crap "low speed" DSL is enough to push the music stores off the map.
Alex
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