If you haven’t already after almost 100 years in business HMV have gone the way of many other music stores such as Virgin Megastore, Zavvi, and Tower, and have entered administration. It’s unclear right now if they have a buyer, but for now they’re remaining open for as long as possible. The company has been struggling financially for the past year and shares in the company plummeted last month. To put it bluntly, the sh*t has hit the fan.
This to me is proof of the dominance of the internet and it’s vast directory of marketplaces such as Amazon, eBay, as well as streaming services such as Netflix and LoveFilm. Not only is it online retailers that are to blame for the demise of the brick and mortar stores, so called pirating is also a key factor in this. It’s understandable really though, why would you pay £7 for a CD that you can purchase online for half the price & even cheaper if you don’t want a physical copy.
Single sales records for 2012 really showed the scale of the damage done to HMV with just 3% of the 189 million sales were physical CD’s whereas downloads took the remaining 97%, and were mainly purchased through iTunes.
I’m not sure how HMV will be able to pull through this, but this is a sure sign that we really are living in an online world.