Tuesday, 20 January 2009

HMVs purchase of 11 music venues is a game changing move

HMV - a leading record store in UK - has very cleverly transformed its business model and potential fortunes overnight.

The world knows that the record business is in long term terminal decline given that digital, file sharing, etc, has changed people’s music buying behaviours forever.

HMV have moved into the live music business through the purchase of 11 live music venues.

This is a perfect business fit for them, as summed up by their CEO when he said:

‘The deal was far more than a rebranding exercise of some of the venues. Music is very much part of our DNA, and by extending the HMV brand into the growing live music and entertainment market our customers will, as never before, be able to access and experience music in all of its forms via HMV"

Put yourself in the mind of the consumer and compare these two different types of experiences.

In a store you are wandering around, looking at stuff, maybe thinking about the pleasure you'll get when you play what you buy for the first time. There may be some pain at the check out [cost, time, rude staff, whatever] but basically it's an okay brand experience.

In a gig you are with yor mates, the band is great, the music is loud, you're having a fantastic night out. What a great brand experience.

By moving into live music business HMV has, at the stroke of a pen, opened-up massive and extremely relevant brand exprience opportunity that should transform how consumers' feel about them. Not to mention the interesting merchandising, cross promotion, loyalty initiatives (tickets to gigs), etc, opportunities.

All this should help drive HMV music buyers through the path to advocacy to become fans and advocates.

Like the O2’s success with the Docklands Dome, I think this link is inspired.

No comments: