Along with Blockbuster and other prominent high street retailers HMV collapsed into administration after struggling to compete against cut-price supermarket offers and internet downloads. When it collapsed HMV employed 4,123 staff in 223 stores.
Now HMV has been rescued by the Hilco, saving 2,643 high street jobs and 141 stores. Hilco plans to concentrate on selling music and film and step away from selling consumer electronics. Music labels and film studios, keen to ensure that a major entertainment retailer remains on the high street, are understood to have agreed to support HMV with new supply terms.
Paul McGowan, the chief executive of Hilco, said:
We hope to replicate some of the success we have had in the Canadian market with the HMV Canada business which we acquired almost two years ago and which is now trading strongly. The structural differences in the markets and the higher level of competition in the UK will prove additional challenges for the UK business but we believe it has a successful future ahead of it.
However, refocusing on music is not without risk. Britons are switching to digital downloads quickly – nearly 30% of music downloaded last year compared with about 20% in 2010, according to figures from retail analysts Conlumino. By 2015, about 45% of music is expected to be downloaded.
Music lovers and film fans are not only switching to downloads, but buying more CDs and DVDs from internet stores. Last year, 73.6% of all music and film, including downloads and physical products, such as CDs, was bought online and that is expected to rise to 90% by 2015, according to Conlumino.
The big question: Will the dog survive in the long run?
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Will the dog survive – meeting the challenge of disruptive change — http://www.torbenrick.eu/t/r/qpi
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