DAYS OF CD NUMBERED PANEL SEES ALL-DIGITAL FUTURE.

Byline: Evan Pondel Staff Writer

UNIVERSAL CITY - The CD is a dying format, and the relentless barrage of lawsuits attempting to curb piracy will only drive consumer demand for digital music, according to a panel at the Music 2.0 conference Wednesday.

``Physical media are nearing their sunset,'' said David Dorn, a senior vice president with Warner Strategic Marketing, New Media.

``The days of the CD are numbered,'' said Amanda Marks, senior vice president of Universal Music Group, eLabs.

Though these executives work for different companies, they share a common vision: Digital catalogs will soon become significant sources of revenue for the industry, even though retailers continue to stock their shelves with physical product.

At Universal, a little more than 90 percent of the label's music has been converted to a digital format. Warner's catalog is just behind Universal's, with about 85 percent of its library capable of a download. Marks and Dorn said that 100 percent of their respective libraries will soon have digital capabilities.

But among the barriers to more efficient digital music is piracy. Last month, the music industry unleashed a new round of copy-infringement lawsuits, targeting 761 file sharers on college campuses across the nation.

Twenty-five of the lawsuits brought by the Recording Industry Association of America were against the illegal distribution of music files through services such as eDonkey, Limewire and Kazaa.

While many have questioned the efficacy of such lawsuits, ``I truly believe they have been effective,'' Marks said on a morning panel at the Universal City Hilton. ``For whatever reason, people failed to realize it was illegal to download music (for free) until the suing began.''

But the frequency of the lawsuits is what bothers Kenneth Hertz, a Beverly Hills-based attorney who represents several artists.

Instead of curbing piracy, Hertz said the lawsuits inspire some technologists and consumers to look for new ways to download music. ``And in the long run, all of this litigation will turn counterproductive,'' he said. ``Technology is evolving at an accelerated rate for many reasons, and more people will soon search for more anonymous ways to steal music.''

Just as technology may inspire piracy, companies such as Napster, eMusic and GarageBand.com are encouraging more consumers to pay for their music. ``The more options out there, the more likely consumers will buy their music through legitimate methods,'' said David Pakman, eMusic's chief operating officer.

The New York-based company is a destination for independent music sales, offering about 500,000 tracks that are accessible with a subscription starting at $9.99 per month for 40 downloads.

GarageBand.com is attempting to curb piracy by fostering relationships between artists and their fans. Geoff Byrd, a singer-songwriter whose work has been marketed by the San Francisco-based company, said his online identity is bringing him closer to his fans.

``And I think once they understand what I'm about, by going to this site and learning about me, they are probably more inclined to want to purchase a track and help out other artists,'' he said.

Evan Pondel, [phone]

evan.pondel(at)dailynews.com