HMV: Staying Physical in a Digital Age

                In today’s age of streaming services and illegal downloads, it may seem surprising that a traditional music retailer like HMV can keep its doors open. HMV has set itself apart from other entertainment retailers by adapting to what the market is asking for, mainly by expanding their merchandise/collectables selection within the store.

                If you are a music fan like me, you have no issues with going to the mall and buying your favourite band’s new CD. But for others, the convenience of digital streaming services and illegal downloads makes buying physical music unattractive. To combat this change in market needs, HMV has emphasized their focus on something that can’t be downloaded – merchandise. Star Wars spatulas, Game of Thrones throw pillows, and Batman shot glasses now fill shelf space that used to be devoted solely to CDs and DVDs.  In the last few years, significant store space has been converted to accommodate these pieces of physical merchandise. This expansion of the store’s selection of merchandise makes it so HMV can combat loss of music or movie sales, while still maintaining the brand of an entertainment store.

                Another area of interest for HMV is the resurgence of the vinyl record. This vinyl renaissance has enticed HMV to include small sections of records of both new releases and represses of classic albums. The vinyl record market is very small presently, but is one of the fastest growing markets in the music business¹. Including a section for vinyl records allows HMV to capture a niche consumer who used to only have the option of smaller specialty record stores.  For HMV to stay relevant as a physical media store, they need to hop on these trends, even if they are short lived.

                In addition to these physical “undownloadables”, HMV also is giving out experiences. Their larger stores are often hubs for instore performances, appearances, or signing events by popular acts with their HMV Live initiative. Recent performances by Silversun Pickups or Neck Deep at the HMV Underground venue located at the flagship store on Yonge Street in Toronto has made the retail space more than just a place to shop.  The company also has a rewards program, HMV Pure, which offers exclusive cast-signed merchandise or concert trips to the most loyal of customers.

                 With physical media sales declining, it takes a lot to stay in business as a media retailer. Is HMV’s strategy of selling experiences and entertainment merchandise enough to keep them afloat in the long run? Both the music and film industries are changing the way their media gets to consumers, it’s up to HMV to continue to innovate and adapt. 

http://time.com/money/4056464/vinyl-records-sales-streaming-revenues/

http://www.hmv.com/ca/hmvlive