From Physical to Digital

With HMV about to make a strong move into the digital realm, some consumers think the film and music giant will be leaving some of its great heritage behind in an effort to please consumers.

Whilst it is certainly a departure from its physical presence on the high street, the change in direction will herald what is hoped will be a new age for the brand.

The retailer initially commenced with a bricks and mortar store on Oxford Street, which was opened by the Gramophone Company in 1921. The name – His Master’s Voice – came from a classic painting, and the classical theme continued with acclaimed musician Sir Edward Elgar opening the flagship store. The brand’s relationship with musical legends continued into its later decades, with Bob Geldof and other celebrities making frequent appearances in its history.

Now, under the guidance of Hilco UK (which acquired the retailer on 5 April 2013), the brand will be building on its reliable name in the online world.  HMV’s Canadian counterpart, HMV Canada, has already successfully launched The Vault, an online streaming service which allows users to pay a set fee per month to have access to its collection. It is divided into ‘web’ and ‘web and mobile’ options, which – given the proclivity of users to utilise more than one device – has proved advantageous for the company.

The UK branch’s digital expansion will possibly follow in the same vein, though it will initially focus on ecommerce. Prior to its takeover by Hilco UK, the retailer had focussed more on their physical stores, which proved to be a disadvantage in a market where films and music are more frequently purchased online. Other online retailers such as Amazon dominated the scene, in contrast with HMV stores, which were often being used to browse physical copies of items before consumers purchased them elsewhere online.

The combination of the prestige from its prior incarnation and the appointment of former Vodafone executive James Coughlan as the head of the digital expansion should give the brand the boost it needs to once again become a forerunner in the film and music industry. Though it faces strong competition, what seems certain is that loyal consumers will be eagerly awaiting the digital launch in October 2013.