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Failure To Adapt Led To HMV’s Failure

Failure To Adapt Led To HMV’s FailureWhen HMV first requested help from eminent failure and bankruptcy in 2013 most people thought that it was dead. During that period its sales had plummeted by 10 % and retail analyst Mark Saunders had said that HMV’s work model was unsustainable and highly irrelevant as it had failed to change in the digital era where 73.4 % of both films and music is available for download from internet. But after Hilco bought it they saw value in HMV’s huge repertoire of music and started selling its videos and music in high street by keeping half of its exclusive stores open.

Though the brand did fairly well in the first few quarters as sales from its flagship store in Oxford Street was able to even undertake mighty Amazon in 2015 as largest seller of real physical music in Britain. During early part of this year Hilco had declared about winning the Turnaround Decade of the Year award for its achievement in turning around the music retailer into positive growth. With advancement in technology and models like Spotify, Netflix and Amazon Prime where movies, music, sports and other content can be streamed live people rarely use DVD’s or CD’s for entertainment.

This second wave of revolution in digital world has led to death of HMV as a brand as they do not have any footprints in the digital world. Hilco’s Paul McGowan said that it is said to see market for DVD’s deteriorate rapidly to such an extent in the past one year that now it simply does not exist as people can now use one device for all their needs. During this Christmas the sale of DVD’s at HMV fell by 30 % when compared to last year. As both physical music and video are its only sources of revenue it is not able to sustain itself anymore. This is a fate that is shared by several retailers in high street but there is still hope as millions still want physical copies of artists like Ed Sheeran, Adele, Greatest Showman and others.

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