Comment Re:Didn't Pepsi do this? (Score 1) 135
I'm not sure about that. It depends on the cost model you use. If you treat every one of those units as a fully priced CD then yes, its a lot of money you have sitting on the shelf. But if you think of every one as a $0.25 piece of plastic and paper that has no value until someone buys it (which is what they really are), then you can afford to warehouse a heck of a lot more of them.
And there's no wastage as older music is fairly non-perishable. Not like a warehouse full of beasty boy or JLO CDs - that would make a rotten smell real fast.
I think the record companies will fight like wolves for quite a while longer to prevent digital distribution starting up. Once they are no longer seen as delivering "units" people will start asking just what it is that they do do.