The Canary In The Coal Mine Is Still Breathing Heavily

PC software has oftentimes been linked to the canary in the coal mine. As purchasing and downloading software virtually has become so pervasive some say PC software is the precursor to the death of the store, just like the canary warned the miners of old. In that spirit I would like to point out that NPD just released a new report from our software group about online software purchasing. One of the issues we highlighted in the press release deserves more insight as it directly addresses this. According to the report, 63% of PC software sales online were downloads, that is a virtual sale and delivery, but approximately one-third of those folks opted to also have a shiny disc sent along. And 37% said they didn’t want a download, just the disc (and the pretty box!!). Adding it up that means that 59% of all online buyers wanted the box. So, while some segments of the industry may tout that virtual product and the cloud will make the store (or the box) obsolete, the consumer’s perception is not quite the same.

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