HMV Increases Digital Content Offering to Boost Lagging Retail Figures
Following from a recent disappointing trading update, HMV is aiming to ramp up its retail figures through an enhanced digital content strategy as part of its transition to a "broad-based entertainment brand".
The music and book retailer saw sales for the five weeks leading to 1 January 2011 taking a downturn of 10% on last year due to a 13% slump at its stores. Their trading was also negatively impacted by recent severe weather and "challenging trading conditions".
HMV said yesterday said that their profits would be at the lower end of forecasts and they expected to close 60 stores in the next 12 months.
Digital music company 7digital, of which HMV holds a majority stake, is part of their business development plan. A spokesman for HMV said this morning that it will help them extend existing projects that are focussing on the development of digital music retail and music apps.
"Providing digital access to content is an important part of our transformation... Our relationship with 7digital will allow us to look at other entertainment content. There will be some announcements in the not too distant future," he commented.