Coolfer thinks that it's "science fiction territory" to suggest that the labels want to eliminate a middleman like iTunes Music Store.
Glenn over at Coolfer misses the boat.
The economies of scale in brick/mortar distribution and digital distribution aren't comparable at all--all that's required are server farms and software--which is why it isn't science fiction to suggest that labels might be able to ultimately eliminate Apple. The headaches of physical distribution are legendary, entrenched, have long reaction times, and are getting more expensive. Digital distribution is exactly the opposite--it requires far less capital investment, is scalable (and also generally less expensive with more traffic), and trends well with customization. Customization, as you may know, is a signifier of a mature industry and a leading key to profitability.
There is only one reason that the labels have not immediately overthrown physical distribution and pushed hard on the boundaries of digital distribution: piracy fears. Thanks to Napster (and now Apple with iTMS), consumers have already begun a rapid change to digital distribution. We're waiting for the labels to fully embrace it, and when they do, they will work hard to eliminate any and all middlemen.
