HMV will overtake Amazon ?

13:51 Oct/01/2014

Very weird things happenings these days.  Firstly Pioneer sell it profitable DJ division, and today this.

The Guardian  write: "The music retailer is on course to overtake Amazon as the UK's biggest music and DVD retailer, just 18-months since its collapse."

To put it shortly, Ex-high street chain HMV is reportedly close to overtaking Amazon as the UK’s biggest seller of CDs and DVDs, with HMV stating to be just 1% behind the market leader.

How that miracle happens?

HMV was saved by  firm Hilco. Its chairman Paul McGowan says the commonly held view that digital (music) was killing the physical "was never true". "Only 30% [of music buyers] switched to digital – 70% of the market is still physical." It's only a "matter of time", he adds, before HMV reclaims the top spot from Amazon, which banks 20% of UK music and DVD sales versus HMV's 19%. Sales at HMV stores have increased nearly 14% in the past two months, including a 21% increase in sales of CDs and vinyl records.

Key to HMV's resurgence has been an increase in live performances, with more than 300 acts ranging from Ed Sheeran to Megadeth pitching up in stores to plug their latest releases. The retailer says an expanding roster of live acts is a win-win, as Sheeranators, for example, are able to get up close and personal, while at the same time the mini gigs pull in extra punters and sales. They are also good news for record labels too, says HMV, with live performances able to make the difference between a No 5 album and a No 1.

Research firm Kantar Worldpanel has also confirmed that HMV’s share of the entertainment market has increased from last year’s record low of 10.7% up to 14.7%.

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