| Sun 6 Mar 2011 |  Paul Lucas |
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HMV is the latest in a long line of music stores to be rocked by falling sales and stores closing as more music lovers turn to the internet for their fix of the latest new releases.
The company announced that its full-year pre-tax profits would miss market expectations of £45million on the back of 60 shops closing.
In recent years, several of HMV’s rivals have collapsed including Zavvi, Tower Records and Virgin Megastore. It seems an increasing number of consumers are turning to supermarkets and online stores for CD purchases, and internet sites for music downloads, which could spell the end for the high street music store.
How downloads are taking off
The days of rushing out on a Monday morning to buy the latest single from the hottest act appears to have disappeared with single tracks now bought almost exclusively online. Statistics from the BPI in 2006 showed that 21.52 per cent of singles were still bought in CD or vinyl form. However, by 2010 the share of the market had dropped to just 1.98 per cent with downloads dominating 98.02 per cent of sales.
By contrast, album buying habits have taken longer to adjust to the internet phenomenon but downloads are catching on. In 2006, album sales through downloads stood at just 1.81 per cent – but by 2010 this number had grown to 17.51 per cent.
There is a marked disparity in how different age groups buy their music. It is actually 20-29-year-olds that are the most likely to use the internet for their music purchases even ahead of teenagers, a surprising number of whom still prefer music specialists. However, it is the over 60s that predominantly stick loyally to record stores for their music buying. Rock is the most downloaded music genre, while country fans are the most likely to buy from a music specialist.
Tuning in for good deals
| Consumers looking to get the best deal possible on a new CD album should compare prices using a comparison website. Generally online retailers are cheaper than high street stores due to the savings they make on overheads. However, many record stores do have their own websites which are worth visiting to compare prices. Look out for discount codes too such as HMV discount codes and Play.com voucher codes which could help you secure free delivery or money off your purchases. Supermarket chains should not be overlooked either with coupons available for the entertainment areas in Asda, Sainsbury’s and more. |
Anyone who prefers to download music should still be on the lookout to save money. 5hop5.co.uk regularly publishes iTunes GB discount codes which can be applied to a purchase and are well worth taking advantage of, particularly as the government plans to crack down on illegal downloads.
