If you had a HMV store in your town, you might not see that store survive much longer. HMV locations have been going out of business for a few months now all across the globe, but major record labels aren’t willing to let the company go just yet. Allowing HMV to completely collapse would spell disaster for record labels. Yet, HMV has little chance of holding it all together.
The Fight to Save HMV
Sony, Universal, and Warner Music are all looking to save HMV. How? By offering buyers considering snatching up HMV locations major DVD and CD discounts. Why would record labels go through so much trouble? Record labels are already having a lot of trouble keeping sales up. Allowing a giant company like HMV to close up shop would mean losing even more money when it comes to DVD and CD sales. Currently, HMV has hired a major accountancy firm to help the company close a selection of more than 239 stores across the world.
Reportedly, there are a number of buyers looking to pick up pieces of HMV, and now those buyers have even more incentive to purchase pieces of the record retailer. With large labels on board and looking to back HMV, it might be hard for some buyers to say no. Then again, it’s even harder to sell CDs and DVDs to consumers who just aren’t interesting in shopping at a physical store. Apple and Amazon dominate Internet CD and DVD sales, so a store like HMV has little (if any) chance of surviving offline.
Is This The End of Record Stores?
Record stores have been around for decades, but it might be the end of the record store staple as we know it. Movies like Empire Records will be things of the past and the concept of buying a CD or DVD from a record store may soon cease to exist. But who can blame consumers? Why would the average consumer buy an expensive DVD or CD from a record shop when that same item can be purchased for half the price online? It’s tough to imagine that record labels will be able to help HMV step back from the brim of bankruptcy.
Perhaps the discounts that the music industry is offering HMV might help the company pass along savings to consumers. Then again, it’s hard (if not impossible) to compete with the prices that Amazon or Apple offers – especially now that Amazon is rumored to be working on a few extra discounts for consumers that buy CDs from the company. After all, Amazon and Apple have a seemingly endless supply of DVDs and music at majorly discounted prices.
Do you have a HMV in your town? Has it closed lately? This is just the beginning, it seems. For those rooting for the legendary record company, it’s going to be a long and tough road (maybe a decent stock pick if you have a lot of faith in the company). For those who’d rather buy online, the demise of HMV seems to be just around the corner.