Blog Post

The Music Retail Meltdown: Musicland and HMV

Two interconnected pieces of news came out across continents today, emblematic of the declining fortunes in the offline music retailing industry:

Musicland: This is in U.S….music retailer Musicland (owner of Sam Goody) has filed for Chapter 11 bankruptcy protection yesterday. Hurt by competitors like BestBuy and Wal-Mart, and of course, online/downloading.

HMV in UK: A more direct effect, or at least publicy declared one, is the case of HMV in UK. The CEO of the music retail chain resigned, and the company blamed the bad fortunes to the combined power of online retailers and the supermarkets for plummeting sales.