We discussed it in our book around distribution channels converging and entering each others' business. Probably all readers of our blog are well aware of the phenomenon that supermarkets are selling DVDs, music CDs, videogames etc.
Yet the numbers are alarming. The Financial Times yesterday (Feb 21, 2006) reported that already a quarter of DVD and music CD sales in the UK, for the last 52 weeks, according to market analysts TNS. Computer games are also joining this group, with over 12% sold in supermarkets in Britain. The growth for each has been quite dramatic with several percentage points of market share gained each year. And like we say in our book, the music store like Virgin or HMV is becoming more and more a content supermarket, selling not only music CDs, but DVDs, videogames, magazines, etc.
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Posted by: Cheap Beats By Dre | August 08, 2011 at 08:43 AM
I think it's normal that companies try to expand... The bad thing is that small businesses that sell music and DVD are paying the price, but on the other hand it's also their fault for putting all their eggs in one basket and not expanding (eg. most of the music & DVD store owners have been around for years and had a lot of profits, but they didn't try to start other business ventures or to open other music & DVD shops around)
Posted by: Plumber London | October 17, 2011 at 09:47 AM
I think it was obvious that music, dvd and video game stores would have died out eventually... and even big chains will die out when people will start shopping online on ebay, amazon, etc
Posted by: Traffic In Spades | March 08, 2012 at 12:06 PM