HMV needs to know its own strength

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2 Responses

  1. Joe says:

    Yes the market for CDs has collapsed, but so has the market for recorded music. People just do not buy music in the same masses as they used to, even with the convenience of iTunes. As you said, its shrinking rapidly.

    HMV should not have to rely on sales of CDs though. With the money now being in touring and sponsorships, HMV can be providing vital publicity and merchandising space that record companies will be willing to pay for, if the audience is there.

    Just look at the size of the new One Direction store opened in New York, I admit this is another extreme example based on a modern day Beatlemania, but it gives you a good idea of where the industry is going.

    And yes you’re right about the shop assistants, this is one area that must improve along with a major refit of the way stores are planned.

  2. WillPS says:

    I think the above represents a bit of a fantasy on the author’s part and not a sustainable business in 2013. The idea of buying music on a physical circle of plastic in a physical environment is increasingly becoming alien. The market for CDs overall has totally collapsed; back-catalogue stuff is practically a niche market now, and chart will be in the same place before long.

    People get to know and love music through friends now, that hasn’t changed – you’re right. The difference is, they share links to YouTube or Spotify now, or they sit in each others rooms, saying have you heard ‘blah blah blah’ then just playing it. It’s the dream come true; no record shop needed.

    “knowledgeable shop assistant” (not something I’ve ever experienced at HMV, but ok – lets go with it) – well that’s just last.fm or Spotify Radio. OK – so there’s the computer vs. human argument but in my experience it does a bloody good job of it.

    The author also fails to recognise that Virgin Megastores ceased returning profits a decade ago; their ultimate demise expedited (but not caused by) by the problems with Woolworths Group/EUK.

    Spin it however you like, even if HMV were to grab ‘the whole pie’ by annihilating supermarkets, Amazon, Play.com and all the other e-commerce operations (which is not going to happen, but again, lets go with it) they’ll have the whole of a pie which itself is shrinking rapidly. Two years, max.

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