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Has Musicland Outlived Its Usefulness?
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2003-04-10
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Best Buy's recent announcement that it was seeking to unload its Musicland businesses is perhaps the most vivid illustration of how the emergence of digital music is impacting the music industry. While the company partially credited the decision to "continued slowdown in traffic in traditional shopping centers nationwide," the declining prospects for CD sales in the long run appear to be the primary driver to unload Musicland.

On the other side, Best Buy stores, though hit as everyone by consumer weariness and an impending recession, have faired relatively well as digital technology, from DVD & CD burners to portable devices used to enjoy digital media, continue to entice consumers. This illustrates the progressive migration from a primarily one-product market, the CD, to a multi-product, multi-platform marketplace where excitement shifts from the actual entertainment product to the multiplicity of features, functionalities and interactivity made possible by digital technology.

This means that the music industry will increasingly become dependent on the tech industry & its retailers to push music to fans and buyers, much as it has been on broadcast radio & cable music TV. Best Buy, not Musicland, is in fact the music industry's best ally in educating consumers and demonstrating the attractiveness of today's legitimate music services. And as for Musicland, have I ever told you the story of the horse-&-buggy?

Related News from Mi2N:
» Best Buy Actively Marketing Musicland Businesses


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