Music Sales Boom After HMV Gloom

artist: HMV date: 01/31/2013 category: industry news
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Music Sales Boom After HMV Gloom
Music sales in UK shot up in January when British music fans realised they might lose HMV. HMV, Britain's only nationwide high street music retailer, announced it was going into administration after being rejected a £300 million ($475 million) loan to prop up their dying business. Now people believe it helped boost UK music sales this month, which were up by 11.6% compared to the same period last year. "There has been a significant public reaction to the threat to HMV. Stores have been inundated with customers concerned that they may lose their local store and this appears to have translated into sales," said ERA director general Kim Bayley (via Music Ally). Another theory behind the boost is that people with HMV gift cards who were told they were invalid then rushed out to spend them as soon as they were activated again following criticism. However, HMV only announced its closure on January 15, which doesn't explain a rise of 15.3% in the first week of January, though the regular annual New Year sales may account for this. In the two weeks following HMV's administration announcement, music sales were up by 14.2% and 12.9% respectively. HMV may survive in some form, but in the long term its closure is likely to have a negative impact on music sales. Reports say it accounts for 38% of physical UK music sales, and the only alternative is supermarkets which offer a relatively limited and mainstream selection, which affects investment in independent music.
More HMV news:
+ HMV Announce £16.7m Profit Less Than 2 Years After Going Under Industry News 09/30/2014
+ HMV to Return to Flagship Store on Oxford Street Industry News 08/08/2013
+ HMV Reveal Plans to Open 'New' Store on London's Oxford Street Industry News 08/06/2013
+ HMV to Relaunch with Streaming Service Industry News 05/30/2013
+ All HMV Stores To Be Sold Next Week Industry News 03/19/2013
+ Supermarket Starts Buying HMV Stores Industry News 02/28/2013
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