HMV has been in the news constantly this week due to the fact that the the music mega-chain has now gone into administraction, this is very bad news as this now means thatb the last major music chain on the high street will now cease to exist if something is not done soon. It is also sad as HMV is the main place the people have bought their first CD and as such holds a place dear in many people hearts.
This does not come as a surprise as the other big boys in the high street music industry such as Virgin Megastores, Tower and Zavvi have already fallen and disappeared from the high street thanks to the rise of the digital media services.
Chris Andersons Long Tail Theory can be applied to HMV and may also explain partially why the brick and mortar shops may have fallen. As HMV only have limited shelf space within their stores they cannot afford to stock the more niche products as they will not sell as well as the chart toppers, where as people can find all of the niche products they want on the internet based stores which according to the long tail theory adding up all of these niche sales will equal the amount of profit from the higher selling products.
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