Last week marked a milestone event as reported in the New York Times - the death of the mega retail music outlet, one of the last giants. Virgin Megastore closed its doors for good on Sunday. It's an example of another channel concept heading off to the channel graveyard, and iTunes has been the killer in this category. One brand has single handedly changed the way the purchase of music is being played out today.
Granted, the music industry has been in turmoil for over a decade, but the death of the music big box has been swift. Virgin Megastore was predeceased by the likes of Tower Records and HMV. FYE still is holding on with 700 stores, but has closed over 280 in the past two years. The Grim Reaper is knocking at their door! Music sales continue to decline.
CD's still account for 77% of all album sales but that number is slipping. The majority are being bought at the large chains like FYE, Wal-Mart and Best Buy. One wonders what the percentage of CD's will be like in five years as the shift to digital transactions continues.
What is missing in this form of transaction is community. There once was a time when record stores were a place to hang out, talk music and learn about new artists. What is lost is the magical feeling of a new hit record in your hand ready to play. Yes, digital is instantaneous, but lost is the feeling of having the prize in your hand.
Like any big category, there are still plenty of independents left in operation. According to the New York Times, there are over 2,000 independent music sellers in business across the U.S. They're successful based on a model of customer service that appeals to the music lover who needs to see and feel the music in the company of others. It might even be vinyl for that matter. There is also a place in every category for smart independents who deliver what the big boxes can't.
iTunes is the new category giant in the music world. There certainly is no disputing that fact. But, it is faceless and without personality, much like many big boxes today. Music is all about engagement and involvement. It's about how it makes us feel and act. It taps into our hearts and minds. You can't replicate this in the digital space. For many, the day that iTunes became the preeminent force in music distribution was the day the music died.
Rings true. But some people are still buying vinyl (my son included). The medium may not be the message. Maybe we are.
As a fan of itunes and having not visited a Virgin store in over 4 years, it is a sad reality. you brought back some warm memories of classic record stores, thank you! B2B Marketing services
I don't have the personal connection to record stores like some but I can relate to the atmosphere they gave. iTunes does have a means of rating artists and bands even songs but yes it is lacking in a true community and atmosphere of the old record stores. Other music outlets in the digital space are a better at this but they are more nitch to the music genre. Look at traditional radio vs. Satellite and online radio. Now you can customize your own listening preferences, create your own stations, share your stations and music preferences with friends and other music lovers, even explore what others are listing to, all in the digital world. Look at Pandora.com, last.fm and a few others have done to turn the industry on its head.
Video stores are heading down the same road as Virgin. Look at what NetFlix and iTunes are doing there.
The experience still seems artificial to me from the real thing no matter how these challenges are addressed.