Total digital music revenue in the UK increased in 2013 driven by growth in digital album sales and streaming. However, physical CD sales continued to decline. Streaming revenue grew significantly and helped lead to the first overall growth in music revenue since 2009. While iTunes dominates digital music sales, HMV will need to challenge this dominance to succeed long-term. Many experts argue that for traditional record stores to survive, they must invest in creating experiences like events and a comfortable environment to draw customers into stores and differentiate from online options.
7. Digital album sales and streaming
boosted total digital revenue in 2013
to £365m, up from £326m in 2012.
Total revenue from sales of physical CD
albums and singles and music videos
was down 6.4% at £365.4m.
Streaming revenue increased by 41%,
bringing total UK revenue to £730.4m.
This was the first growth in overall
revenue since 2009.
BPI, UK 2013 music sales
8. iTunes is the dominant force in digital
music, and HMV will need to challenge
this supremacy if it wants to succeed in
the long-‐term.
Laurie Krohn, Kantar Worldpanel
13. Online clearly has to be part of the
‘new’ HMV, but the store experience is
also likely to be near the top of the to
do list. The stores have lacked the level
of fizz and excitement needed to enVce
entertainment lovers through the
doors.
Retail Week
20. Put in some comfy seats and coffee
making faciliVes.
Lauren Dye
21. Create an experience with regular
events. Brick and mortar stores will
eventually die out if they don’t invest in
creaVng an experience for their
customers.
Vicky Lyashenko
22. Create a visually connected by separate
space for people to hang out. Widen
the aisles to make it easier for people
to stand together and talk music
without blocking the passage or feeling
crushed.
Mark Mitchell
23. By hiring kind, knowledgeable, open-‐
minded and enthusiasVc employees.
Human in Training
27. It is hugely important that HMV widens
its perspecVve and creates a shopping
experience that Vcks all the right boxes
in terms of interacVvity and
personalised service.
Dan Wagner, mPowa