All is not well over at HMV. Shares crashed by about 20% after it announced more losses.
HMV is the last of the high street “record shops”. It was always the biggest and holds the ground in the centre of many towns and cities. However, the industry has changed, most people purchase CD’s online, though sites such as Play.com and Amazon.co.uk. Most music is now downloaded to mobile devices and computers.
Did HMV Fail to Innovate?
HMV has not changed its high street store format to any great extent in the last decade. The focus is still on shelves of CD’s, DVD’s and some gaming software and devices. Is their failure as a result of lack of innovation?
Where are the hotspots to instantly purchase and download new music from HMV?
They do now have a “New mp3” download section on their website, but is it too little too late? Hmvdigital.com is their download site, and with a pagerank of 5 a fair number of people are talking about the site, but it is not powerful in web search.
No Business With Snow
The snow has kept people away form the high street so far. Many eCommerce sites have reporting an increase in sales over the last week as the snow stopped people leaving the house to do their annual Christmas shopping.
Will Christmas Save HMV?
The next few weeks could make or break HMV. They seems to be banking on Christmas to bail them out. However, do people still buy each other CD’s and DVD for Christnas? Maybe the DVD / BluRay market is safe for the moment. They certainly need to re-think music.