ERA Statement on HMV
Director General Kim Bayley said:
“No one can say this is a surprise, but it is still a shock. HMV has been part of the fabric of the music and entertainment business for decades. But there are signs that this may not be the end of the story.
"It would be wrong to underestimate the affection which HMV is
held by consumers and the determination of music and video
companies to see HMV survive in some form.
"We know there is consumer demand - in a poll last year HMV was
ranked in the Top 10 of the stores people most want to see on their
High Street. Data suggests they generated 170 million in-store
visits last year and another 40 million online.
"At the same time both music and video companies are painfully
aware of the consequences of losing a retailer responsible for
around a quarter of UK physical music and video sales. We
have to hope they will not stand by and watch HMV go down.
"There has been much misinformation published in the past 24
hours about the relative strength of physical and digital
entertainment formats. Physical formats like CDs and DVDs still
account for three quarters of the entertainment market. In other
words HMV going from the high street is in the interests neither of
consumers nor of suppliers.
"For their part, our members - although competitors of HMV -
have been quick to express their support.
"We believe it is possible for the administrators to rescue
something out of this situation. There is a precedent that
you can streamline your costs and in particular the number of
stores a chain trades from and still retain the bulk of sales -
that's precisely what happened with Game.
"There is clearly is a viable business model for an
entertainment retailer on the UK High
Street. It is up to the administrators now to do their job and
take the steps necessary to make it possible."
For more information, please contact:
Steve Redmond, firstname.lastname@example.org,
The Entertainment Retailers Association is the UK trade
organisation for retailers and digital service providers of music,
video and videogames. Members range from High Street
specialists and independents to supermarkets, internet retailers,
download and streaming
services. ERA's key priorities include facilitating
innovation in entertainment retailing and coordinating the retail
response to piracy.