Something which I failed to mention in my previous article, which is slightly important and thats the whole business side of things.
Back in 2011, HMV had 19.1% of all music sales in the United Kingdom. At the same time, Apple’s iTunes had 17.9 – a close battle indeed but HMV were still ahead, just. Amazon managed to take up control of online CD sales by a LOT but these are companies that aren’t based in the UK, unlike HMV.
Amazon, Apple and other various online stores are based outside the UK and therefore paying minimal tax on the growing sales in the UK, so the fact that ‘for every pound put into Britains music industry, you get two pound back’ is now dead. Its totally dead, as for ever pound we put into this industry now, a fiver goes elsewhere, probably. We don’t see it and neither does HMV who pay a hige amount of tax, like any UK based business.
That has got to be a massive disadvantage, surely?
Woolworths had 33% of all CD sales in Britain at one point and its closure boosted those in HMV, but downloads have taken over compltely. Supermarkets aren’t going to stock everything and certainly won’t get the same respect from record labels as HMV does. I’ve noticed in the last 12 months or so that different businesses in the industry will help each other out.
HMV being kept alive is indeed important, as it is our last gateway into buying real music and discovery. Record labels gave HMV a special deal where buy instead of the company buying CDs in bulk and then selling them however they could, HMV would only pay for the albums sold. This looked after every musician, not just the chart toppers. Everyone relies on HMV whether you can tell it or not and soon enough were going to see see it crossed off from our high street.
|His Masters Voice|