http://www.reportonbusiness.com/servlet/story/RTGAM.20080905.whmv0905/BNStory/Business/?cid=al_gam_nletter_maropen
9% decline in music sales and a mere 2% growth in DVDs. Revenue from games, books and 40% growth in "new technology product category" helps offset revenue drop.
Hmm. Book sales face considerable competition and aren't likely to grow (and indeed will come under pressure from e-books). Oh, wait, the group's Watersone book chain experienced a 4.3% drop in sales.
Games? Well, the drop in music sales and the anemic growth in DVD sales are because of... surprise... digital distribution. Games will go that way, too.
What the "new technology product category" is isn't explained in the article -- it's a widely picked-up Reuters story and none of the papers I found that carried it dug any deeper into what this means. Maybe it's the so-called "gadgets" category on HMV.com (and probably similarly in-store)? Well, if that's the case, that seems to be dominated by various MP3 players and accessories, game consoles, USB flash drives, etc. Useful stuff to be sure... but margins are slim and competition is stiff. Can it save the business? I doubt it.
It's surprising that the stock has risen 11% over the past year on the London Stock Exchange. Wake up and smell the tea, chaps... the party's likely over for HMV. You need only look at the once-mighty Tower Records or Sam the Record Man to see where this is going.
9% decline in music sales and a mere 2% growth in DVDs. Revenue from games, books and 40% growth in "new technology product category" helps offset revenue drop.
Hmm. Book sales face considerable competition and aren't likely to grow (and indeed will come under pressure from e-books). Oh, wait, the group's Watersone book chain experienced a 4.3% drop in sales.
Games? Well, the drop in music sales and the anemic growth in DVD sales are because of... surprise... digital distribution. Games will go that way, too.
What the "new technology product category" is isn't explained in the article -- it's a widely picked-up Reuters story and none of the papers I found that carried it dug any deeper into what this means. Maybe it's the so-called "gadgets" category on HMV.com (and probably similarly in-store)? Well, if that's the case, that seems to be dominated by various MP3 players and accessories, game consoles, USB flash drives, etc. Useful stuff to be sure... but margins are slim and competition is stiff. Can it save the business? I doubt it.
It's surprising that the stock has risen 11% over the past year on the London Stock Exchange. Wake up and smell the tea, chaps... the party's likely over for HMV. You need only look at the once-mighty Tower Records or Sam the Record Man to see where this is going.
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