I have bought maybe 12 albums on vinyl, and got everything else through my (premium) eMusic subscription, a few things from iTunes (but I hate DRM) or via free downloads on MySpace, last.fm or blogs, or (and it's a big one) via promos and review copies.

For me, the era of CDs is basically over. And I'm guessing I'm not the only one, hence the collapse of Pinnacle, Fopp, Zavvi, and everyone else that's about to go bust as sales fall and profit margins wither.

The question: should small labels stop spending all their money manufacturing CDs and records and instead spend it on merch (Of Montreal style) and increasing promotion for (overhead free) download releases?

Do you think the balance has finally tilted?