Record stores across America are turning up dead, including more than few established, high profile chains. Who killed the record store? Was it the iPod, iTunes Store, or is the real killer still on the loose?(RoughlyDrafted, 2007)
One of the most widely known and successful record companies Tower Records filed for bankruptcy protection in 2004. They were considered "Retailer of the Year" over tha past couple of years until the downfall. It was america's eighth largest music store. If you think about it, if a company so large and well-known is suffering hugely, than jsut imagine how smaller companies are managing. All of the stores are now closed and only an online store remains under the company name. Along with this popular company, in 2004, HMV shut down all of its american stores, and Virgin megastores lost $495 million dollars due to the new virtual downlaodable system.
The question now rises, who killed the record store?
The question now rises, who killed the record store?
The death of many of the music chains selling records have pointed many fingers at itunes for their sales losses and found evidence. In 2006, the amount of chain record stores left was 2000 compared to 9,500 in 1991. In contrast, from 2004-2005, cds sales were dropping -8% and album downloads were 199%!!! (The Washington Post, 2007) And who was the largest corporation that to allowed downloadable albums and songs for a cost? Itunes.
Another question raised, are large record labels to blame for allowing itunes to allow these purchases? I think yeah. Offered a contract from itunes, the label gets paid and finds a new way to sell their material while record stores loose their sales completely.
Another question raised, are large record labels to blame for allowing itunes to allow these purchases? I think yeah. Offered a contract from itunes, the label gets paid and finds a new way to sell their material while record stores loose their sales completely.
Photo/Information Source: http://www.roughlydrafted.com/RD/RDM.Tech.Q1.07/1C726ADF-0ED1-42D0-93D9-4FA4E698E94A.html
Stephanie Macedo
Why am I not surprised by this? ITunes definitely is a threat to any record stores. Not everyone is willing to buy high priced CD albums when they can simply just download songs from iTunes. Its about easy access over here, and everyone loves it when things are easily done. All you have to do is download the song and/or album, sync it to your iPod. The iPod is probably the most popular music system and everyone just prefers to sync songs to their iPod so they can listen to their songs whenever and wherever they like. Now when it comes to CD’s let’s be realistic... who carries CD players anymore? The most you can do with the CD is play it in your car or stereo at home. (& not everyone drives a car) However, life is now all about being able to take everything with you everywhere, and an iPod is smaller fits into your pocket, where as a CD player wouldn’t. I guess only diehard fans of artists and bands would purchase the CDs still to show their love..... but that’s about it.
ReplyDeleteSarah Khan
I had no idea music piracy had become such a great issue. I agree with Sarah Khan, that mobility is big now and technology is doing all it can to intrude in every aspect of our lives. This highly relates to the story of Shawn Fanning, who started a prgram that searched and download mp3s directly to his Napster network. In 1999, finding music online was something only the highly advanced could do, and now its so simple and even encouraged by not so annonymous, IPOD, Apple, Sony Ericsson etc. Although piracy fo music is considered illegal, nothign is done about it besides the little warning page that pops up from time to time. This is unfortunate for artists as they just can't make the same profits as before, maybe that's why theres so many artists on tours now..
ReplyDeleteFaiqa Imtiaz
Heres the link to the Shawn Fanning story:
http://www.allbusiness.com/finance/insurance-risk-management/1034008-1.html