HMV to Close All 102 Stores

[4X4]

Originally Posted by Street Pharmacist

This was 2010. It's not that easy to suddenly become something you have no knowledge about. It's virtually impossible to compete suddenly as a software company when you've been a brick and mortar retailer for decades. The two businesses are nothing alike

http://business.financialpost.com/fp..._lsa=54d7-0203

Not sure if you've looked at the calendar, but it's 2017. Seven years isn't exactly 'sudden'. And with revenues in the hundreds of millions, I'm sure they could have hired a couple of people with a bit of knowledge in the online and digital music area, if they didn't have any knowledge of their own. Do any of them listen to music at home on youtube? Do any of them have teenage kids or young adult kids? Technology didn't exactly sneak up on them. It's entirely their fault for not staying relevant. They obviously went through the progression from vinyl to 8 track to cassette to CD... So why did they suddenly stop keeping up with technology? Because the competition passed them way too quickly? Well, that's a fail in my books.

[GGG]

I think you under estimate what it takes to compete with ITunes.

[4X4]

Originally Posted by GGG

I think you under estimate what it takes to compete with ITunes.

I think you underestimate the importance of staying current in whatever business you're in. Of course it's impossible to crack iTunes now. Back in 2010 when when HMV was peaking, they had a chance.

[DownhillGoat]

Originally Posted by 4X4

I think you underestimate the importance of staying current in whatever business you're in. Of course it's impossible to crack iTunes now. Back in 2010 when when HMV was peaking, they had a chance.

When was iTunes launched? 03? Few years of development? ~10 years is a heck of a lead being first to market and having a ton of clout. And on top of that, they had the only decent portable player to play anything off the itunes store for the better part of a decade until smartphones came out.

One of the few to really compete with iTunes IMO was google, who had way more resources than HMV ever could. I recall HMV dabbling in digital downloads, and wiki says they purchased 50% of a company to do that in '09, and had intended to do ebooks as well.

They simply couldn't compete with players already in the field. By 09 apple/google/amazon were well entrenched.

IMO they never had a (good) chance in the digital market, which I would assume is why they branched into video games (failed), the used marked (failed), then vinyl and novelty stuff (failed). It's not like they didn't see the end coming and think they'd stay top dog (ala Blockbuster). I think they tried and just never had a market transition to.

They may have been able to make it work if they downsized and went straight vinyl perhaps in today's market, but the way the music/movie industry has went I don't see them ever having much of a chance.

[Fozzie_DeBear]

Originally Posted by 4X4

I think you underestimate the importance of staying current in whatever business you're in. Of course it's impossible to crack iTunes now. Back in 2010 when when HMV was peaking, they had a chance.

A retail based music store had 0% chance of competing against Apple with the iPod platform etc. None...they were a buggy manufacturer in the age of autos.

[DownhillGoat]

Similar to the conversation, I'm amazed Chapters/Indigo is still around in the same capacity. I get books are a lot more personal to (most) people than physical dvds/games/music, but they fact that they still continue to hold the amount of retail space they do, and be anchor stores for malls astonishes me.

[Cecil Terwilliger]

I'm pretty sure chapters business model relies on making money from the constantly busy Starbucks that they have inside every single location.

[wontondestruction]

Originally Posted by kunkstyle

Similar to the conversation, I'm amazed Chapters/Indigo is still around in the same capacity. I get books are a lot more personal to (most) people than physical dvds/games/music, but they fact that they still continue to hold the amount of retail space they do, and be anchor stores for malls astonishes me.

It helps that some of them still have a Starbucks inside. They removed the Starbucks from the Chapters on Macleod, and that place is dead now. I prefer reading a book vs. a tablet, but I'll buy it on-line if it's cheaper.

[DownhillGoat]

Originally Posted by Cecil Terwilliger

I'm pretty sure chapters business model relies on making money from the constantly busy Starbucks that they have inside every single location.

Possibly. I assume that deal is tilted towards Starbuck's favour though, since they're still selling product. At this point in time I'd have to think there's more people that go in just for Starbucks than the 'old' days of grabbing a coffee and a few books at the same time.

[Cecil Terwilliger]

Originally Posted by kunkstyle

Possibly. I assume that deal is tilted towards Starbuck's favour though, since they're still selling product. At this point in time I'd have to think there's more people that go in just for Starbucks than the 'old' days of grabbing a coffee and a few books at the same time.

I was actually kind of kidding and half making fun of chapters because I'm not sure that anything about their business model is sustainable except Starbucks.

But it's pretty funny to think that renting space to Starbucks really is why they are still in business.

[TheScorpion]

I own about 500 DVDs and Blu-Rays. It'll suck when they stop putting new releases on physical formats. The picture quality is good, and I'm willing to pay for it.

Ah well. All good things must inevitably come to an end.

[Dion]

Originally Posted by TheScorpion

I own about 500 DVDs and Blu-Rays. It'll suck when they stop putting new releases on physical formats. The picture quality is good, and I'm willing to pay for it.

Ah well. All good things must inevitably come to an end.

[TheScorpion]

Originally Posted by Dion

Yep. I am a world-class fool. Ah well

[Violator]

First A&b sound then Future Shop now HMV

Wonder who's next

Toys r us
Ebgames
Best buy

[Inferno]

I'm another one that still buys CDs and Blurays. The only thing digital I buy is PC games. For console games I buy physical copies of my favorites and digital for the rest when they go on sale for $5-$10.

[Looch City]

Originally Posted by Violator

First A&b sound then Future Shop now HMV

Wonder who's next

Toys r us
Ebgames
Best buy

Definitely EBgames. Half their store is now plush toys and those mini figure things.

[darockwilder]

Originally Posted by Cecil Terwilliger

I was actually kind of kidding and half making fun of chapters because I'm not sure that anything about their business model is sustainable except Starbucks.

But it's pretty funny to think that renting space to Starbucks really is why they are still in business.

Indigo makes a little money on books but way more off of the gift stuff and toys. Look at the markdown section next time you're in there and you'll realize how much they make selling scarves or whatever at full price. I think the books are just a reason to get people in the store.

[Dan02]

Funny, last night I was walking down stephan ave and remarked to a friend. I can't believe HMV is still open. And now they're not.

[Jbo]

Not worth it yet...only 10% off the already marked up prices. The up to 30% is random clothes and games

[direwolf]

Originally Posted by TheScorpion

I own about 500 DVDs and Blu-Rays. It'll suck when they stop putting new releases on physical formats. The picture quality is good, and I'm willing to pay for it.

Ah well. All good things must inevitably come to an end.

I probably own more than that, including a pretty big collection of CDs and vinyl. It's been my favorite hobby since I was a teenager, and I'm not about to give it up anytime soon. At least we still have Amazon and independent record shops.

Regarding the article posted earlier in the thread about Amoeba Records in LA, it sounds like they're still gonna be around for a while yet. Their lease doesn't expire for several years according to other reports I've read, and it sounds like they're still going to be in business even if they have to move locations. Thank god. That place is a gold mine for hardcore movie & music collectors.