Asking people what they have in their CD collections may be a thing of the past in Thailand. We are more likely to ask what music they download.

The local music industry has concluded downloads are the way of the future, if consumer behaviour over the past three years is any guide.

"Sales of CDs are dropping significantly. We used to sell more than 500,000 copies of very popular albums. Now the most is probably only 80,000 copies," Prasong Rungsmaithong, deputy managing director of RS Plc said.

"After 20 years of recorded audio tape and fewer than 10 years of recorded CDs, it is now a digital music era for Thai listeners," he said.

MP3 players, iPods and MP3-equipped mobile phones are replacing CDs in today's digital era. Websites and IT centres will replace the old record store.

Increasingly, sales of music will be done over the Internet or mobile phones.

Music-industry chiefs realised for years a technological change was in the wind.

But the move to digital downloads began in earnest about two years ago. The results of that change became patently obvious this year.

The first online album to be released without a recorded CD counterpart, "E1even1h", was cut by Boyd Kosiyaphong, a popular Thai artist and producer of the Loveis music cooperative.

It is available free at www.trueworld.net.

Boyd described the recording as a gift to his fans, but, technologically it was a significant step forward for the e-music business in Thailand.

Interesting moves are afoot at two of the country's music giants, GMM Grammy and RS.

RS started two years ago to restructure its business and made it a goal to be an "entertainment content-provider", including a logo change for a more "digital" look.

In the past year it has introduced its first digital artist, DDZ. The music has brought in an impressive Bt50 million in sales. RS has also tested the market with online sales at www.mixiclub.com.

GMM Grammy recently launched "full-song downloads" via mobile phones.

In terms of consumer preparedness, supporting technology, and payment systems, the industry is not fully digital.

It has started by providing mobile downloads that are then charged to subscribers' telephone accounts. Pre-paid cards are also in use.

Boyd explained rapidly-changing technology was affecting both artists and music companies.

"I have tried to adapt to this change by experimenting with an online album. I believe websites will be the new channel to create a community of music-producers, singers, songwriters and listeners. At www.loveis-music.com everyone can communicate freely," he said.

His website receives about 8,000 hits a day. Boyd expects it to become a key link between people in the music industry and their fans.

He believes a strong online relationship could lead to further "real-world" activities like "meet-and-greets", live performances and concerts that will help musicians to survive financially.

"This is an experiment which could lead to a new [no-middle-man] alternative for musicians," he said.

Prasong of RS said the business model could be similar to that of a "production house" which would still require professional management and marketing to ensure success.

Besides mobile phones, the company will continue to produce live concerts, films and television series as well as artist management, Prasong said.

"Our artists might have only one or two songs released at a time, instead of whole albums as in the past. We could then could promote one song at a time," he said.

GMM Grammy executives declined to comment, but chairman Paiboon Damrongchaitham says on a company website that fast changing music-related technology has hit the entertainment industry hard.

The industry is now waiting for the arrival of 3G technology that will make downloads 100 times faster than today.

Currently, marketing digital music is done via GPRS and high-speed Internet.

Fewer and fewer artists can depend solely on recorded CD sales.

Thai Ticket Master dominates 90 per cent of show-ticket sales in Thailand.

Sales and marketing manager Choakchai Eaimrittikrai revealed that live show business was still growing between 5 per cent and 10 per cent a year.

"I think the big-concert business could be one source of income for artists but should not be the main one. A bigger source should be live performances at restaurants and pubs," he said.

Artist Chaianan Trisarnsri, 30, of Sound Surf, agreed with Choakchai.

"Our albums used to sell around 200,000 copies per release, but a new release is now far fewer and might not even cover production costs," he said.

Chaianan said most of his friends in the industry made a living by giving live performances at pubs and restaurants around Bangkok and big provincial cities, earning between Bt500 and Bt800 an hour per person.

Music production has been hard hit. Anurak Saelee, a freelance composer who works for GMM Grammy, said: "It's more work for less money. It's also more difficult to get the nod for a release."

However, new software could help the production process. Artists could even finish master copies from their homes.

This means greater diversity and, therefore, more choice for consumers.

But pricing is still unclear. Prasong of RS said per-song prices would lower than current CD prices.

Boyd said: "Consumers will be able to buy only the songs they want. Everything will be at your fingertips via the Web or mobile. It'll be like using a credit card rather than cash."

As for CDs, they will still be around for those that dislike modern digital gadgetry and for collectors.

The digital era of music is here, and the industry is adapting to the new world.

"I don't know much about technology, but I do like free downloads. A friend copied hundreds of the latest hits for me this morning. If they charged for the download, I would think twice," said Toon, a student, who declined to give his full name.

Where to download music in Thailand

Free - www.gmember.com, www.trueworld.net, www.kapok.com, www.coolvoice.com

Pay by cash card -www.trueworld.net, www.bughits.com, www.sanook.com

Pay via bank - www.musicsiam.com

Kamol Sukin

The Nation