It's a dead format that has been made widely obsolete due to better technology being available like DVD's or Bluray's. Bluray's will EVENTUALLY overtake DVD's due their superiority and, if broadbands allow, digital distribution will overtake all forms of physical media.
I honestly don't understand why publishers even bother publishing music in physical form. Most of the times I DON'T want an entire album since I don't like all the songs. But this isn't even the gist of it. You have to actually go to a store, browse through loads of section until you actually find the album as opposed to simply doing a search online and finding it in less than a second. Then you have to maintain the CD and we all know how annoying it is when discs don't work. All in all, digital distribution is the way to go. Going physical just inquires more costs.
Incidentally, shouldn't everything be cheaper once you go digital? You know, no production costs and all that...