HMV goes into administration

On the 15th January, the UK was shocked to hear the news that worldwide entertainment store HMV was going into administration after more than a year of financial crises, delivery a further blow to Britain's embattled high streets. With over 100 stores closed across the UK and thousands of employees losing their jobs, HMV just couldn't cope with pressure from online competitors such as Amazon, and play.com.

After the closure, I'm sure many people are left wondering where does this leave the music industry? Without a doubt, the majority of music fans will be more than upset to see the music stores leave their high-streets and feel the industry would be a better place with them. There is still and always will be a large and very significant demand for people wanting to buy music and it's only a matter of time before the digital download will take over the physical form of the CD, just like the CD did with the original vinyl record. As of May 2012, according the figures compiled by the British Phonographic Industry (BPI), 55.5% of the £155.8m spent on music in the UK in the first three months of the year was of digital format. This statistic alone highlights how much of an effect digital downloads have had on HMV and it would be wrong to say they had it coming. Although the digital download is a major factor towards the demise of HMV and it's stores, the dramatic rise in illegal downloading off file sharing Internet websites has also taken a significant effect on the business.

A major worry of many regarding the music industry and the administration of HMV is the effect it could have on independent record labels. With little inner city shops left, the shops were a great way for smaller bands and artists to distribute their music nationwide. But, without them, many new bands and artists may struggle to 'break through'.

As it stands now, whilst the novelty of the physical form of music whether in vinyl or CD continues to die out, the Internet seems to be taking over the music industry. In the past year or so, statistics show that as the sales of the CDs decrease, digital downloads have significantly increased. Perhaps this is a new beginning for music and the industry surrounding it. Despite the rapid failure of HMV and it's stores, music can be accessed much more easily nowadays and people don't even have to leave their homes to get hold of it. Social networking websites such as Facebook, Twitter and YouTube are also great ways for new and old bands to market their music. Without HMV however, music wouldn't be the same as it is today and they can only be thanked for what they've done to the industry.