HMV, the UK’s biggest music retailer, is trying really hard, but has hit a wall till now. Now it hoping against hope, and has made public some plans for an overhaul, some of it focused on digital downloading and even social networking efforts. The company’s three-year turnaround plan will target three key areas including cost savings, revitalizing its core U.K. operations and establishing new channels.
The new channels include a social networking site for music, film and games enthusiasts, providing revenue streams from advertising, sponsorship and paid-for content. Strategic content partnerships have been agreed with Universal Music and 20th Century Fox. The group’s two online businesses, HMV.co.uk and Waterstone.com will account for 20 percent and 9 percent of sales, respectively, by 2010, it hopes.
FT: Simon Fox, the CEO said the cpompany will sell more portable digital products, introduce a loyalty card and trial a “refreshment hub” that would allow customers to download music and burn it to a CD while sipping soft drinks. HMV will also launch its own social networking site and sell music via 3, the mobile phone network operator.