"Ripping" Vs. "Sharing"

The debate about strict copyright laws, digital downloading, and the illegal "sharing" of music has gone on for some time. You shouldn't be able to make a back-up copy of a CD, say some, because that's copyright infringement. You shouldn't be able to download music from a legal Website and then burn it to more than one disc because, again, that's copyright infringement. Apparently digital downloading has caused this horror in the music industry. Yet today, I witnessed something that had me scratching my head. After lunch with a couple of colleagues, they wanted to pop into HMV to grab some "new" music for their iPods. Sick of the same old, same old, they decided to swap: you buy a few CDs you like, I'll buy some I like, and then we'll trade. Hmm...makes sense, right?

To the pro-copyright camp, they just violated the very sanctity of music. How dare you buy CDs and trade music like that? Essentially, that means you got every CD half-price, right? But from the pro-digital, evolution of music standpoint, what they've done is just opened each other's eyes to new music they may never have bothered to buy, in physical format or otherwise. Now not only is there a greater appreciation for different types of music, but there's also the increased chance that they'll like what they hear, and add a new artist to their radar for future purchases. What a concept!

On that note, I was pleasantly surprised to see that there were new CDs available for as little as $12.99, and even $10! The last time I recall, new releases were, at best, $13.99 or $15.99. There were even some pretty good CDs selling "two for $12" or $25. Not bad. Still, I hesitated to buy anything, thinking that I'd just download the specific tunes I want and make a "mixed" CD (only one, of course. God forbid I make one for a friend as well). But at the prices they're at, it's almost worth it to buy the media (especially for the potentially better quality) and save myself the time.

I can't believe I'm saying it, but maybe CDs will return to profitability as people decide that they can't be bothered, or don't have the time, to compile a list of tunes, download them, and burn them to a CD as normal practice. If it isn't a hobby, it can certainly get time-consuming. And iPod owners know how expensive it can also get buying tune after tune, not realizing how much they add up until you get the dreaded credit card bill!

I could be way off base here, but it's food for thought, nonetheless.

On another note, Happy Thanksgiving to all of our readers in the U.S. We wish you all the best on this wonderful holiday. Eat, play, and be merry!

HMV Says If You Can't Beat 'em, Join 'em!

I reported yesterday on our news Website, that "music" retailer HMV has decided to carry iPods and related accessories in many of its stores across Canada. I say (or rather, type) "music" in quotations because, although historically known as a store that sells CDs, DVDs, and the odd audio accessory, like CD cases and cheap-y headphones, the company has managed to evolve alongside the changing face of the music industry. And this is a good thing.

Rather than cry the blues that digital is taking over, or sit tight hoping that this digital music craze will eventually blow over, HMV has simply adjusted its business plan to fit in line with new consumer wants. CD sales are down? HMV added other entertainment products to offset the loss in sales, including video game consoles and game titles. And now, rather than admitting defeat in the music category compliments of the mighty iPod and its partner-in-crime iTunes, the retailer has jumped on board. They're sending out a loud and powerful message: if you can't beat 'em, join 'em. Good on HMV.

Advancements in technology do not have to translate to a battle between the old and new. People will record music onto the hard drives of their portable devices...just like many of us used to record radio or TV onto blank cassette and VHS tapes (come on, admit it. You know you did!) People will download music from the 'net instead of purchasing a physical CD. Instead of trying to tell customers what they want, why not listen to what they're telling you they want? This seems to be a large part of HMV's focus, and I've gained a new-found respect for the retailer because of it. It explains why HMV has survived in a game where many have fallen flat.

As for the adjusted strategy, it's also possible that, as each HMV customer pops in to buy the new iPod touch, he might just be enticed to pick up a few impulse CD buys...hey, you never know.

Music World to Succumb to Digital Downloading

Sadly, Music World is the latest music retailer to succumb to the growing popularity in digital music downloading. According to a report from the Globe & Mail, the company has filed for bankruptcy. Earlier this year, Sam The Record Man closed the doors to its iconic downtown Toronto Yonge St. location, leaving many a nostalgic baby boomer teary-eyed.

Although it's sad to see the effects that digital downloading is having on traditional music retailers, there's also a positive side to this story. Remember, it isn't that consumers are no longer purchasing music; it's that they're purchasing it in a whole new way. Through digital download Websites like iTunes and Puretracks. Through mobile carrier services that let you download a song straight to your mobile phone. Through custom-made CDs that are played back on a home theatre system and streamed throughout the home. Through satellite radio. Through streaming Internet radio. Through portable devices like the Sonos music system. The list goes on and on, and the opportunities at both retail and the manufacturing level are endless. We're not losing interest in music: it's just the platform for which we access and purchase it that's changing.

It is unfortunate that retailers like Music World and Sam The Record Man are feeling the brunt of this change. But there are others who manage to persevere through the storm, mainly by not focusing solely on music. Like HMV, which has managed to remain strong by expanding its offerings to include things like video games and consoles, and a massive selection of movies at varying (and often attractive) price packages. In August of this year, the retailer dropped the price of some CDs by as much as 33%!

Others have made bold moves to keep music sales up: Wal-Mart, for example, offers CDs like the new number-one Eagles album Long Road Out of Eden, at price parity with the U.S. Even non-traditional music outlets, like Starbucks, are managing to remain in the music game. Coffee house Starbucks has built digital music download stations in some U.S. stores where customers can listen to tracks, and create and purchase a custom CD while they're sipping a latte.

There is a way to stay alive in traditional music retailing: it just takes some really creative thinking outside of the box, and an entirely new business plan.

Music World stores are said to close by early next year. As of today, the company's Website simply brings up a Music World logo, but no content. It's a shame, because I did find the store a great destination for tough-to-find DVDs.

In the words of popular rock band Queen, another one bites the dust...

HMV Drops CD Prices by as Much as 33%

Is the traditional music CD in that much trouble? As of today, HMV says it will sell the majority of its music CDs at a 20% lower price point. In some cases, we’ll see up to a 33% price cut. Is this a strategic move on HMV’s part to become the leader in the music CD arena; or a necessary step to keep that part of the business alive?

Music retailer Sam The Record Man just closed the doors to its iconic downtown location this summer, clearly as a result of stiff competition from the online digital music marketplace. It’s no secret that people are downloading music online, but this isn’t to say that there aren’t still people who prefer a store-bought CD so they can enjoy the high-quality sound, and pamphlet inserts. Nevertheless, the number of customers who fit this group have dwindled considerably over the past few years.

HMV has made some pretty smart moves in order to remain profitable in the wake of the changing music landscape. The company has historically been very big in the DVD retailing side, which adds another source of revenue in addition to CDs. Last summer, HMV also added video games and gaming systems to its product roster, recognizing the huge growth in this particular area. This bold, new price reduction strategy can only mean good news for HMV. It will be interesting to see if other music retailers follow suit.