It doesn’t come as a surprise to hear that HMV has entered into administration. It’s always sad to see a brand you’ve known all your life become irrelevant (see Woolworths).
Let’s face it, HMV failed to react quickly enough to our changing shopping habits. It grappled with digital but never truly embraced it.
I certainly think this event marks a tipping point for the major entertainment studios as well. The studios had effectively given their supplies of CD’s, Blu-rays, and DVD’s at cost to HMV. This was to make sure iTunes, Amazon, and Tesco had enough competition that they could not squeeze the studios margins even further.
Instead, HMV going into administration demonstrates just how powerless the entertainment studios really are.
The studios continue to cling to the old paradigms that people will continue to buy their cheap plastic products. That people will continue to consume the generic content that they produce.