HMV Group PLC, which stands for His Master’s Voice is a British multinational entertainment retailing company with operations in the UK, Hong Kong, Canada and Singapore. It also operates a small chain of shops in the UK known as Fopp, a website selling both physical and digital products. It was floated on the stock market in 2002. HMV was originally owned by the Gramophone record company, which later merged with another to become EMI. The first HMV store was opened on Oxford Street in 1921, and today it has 273 stores in 8 countries, employing 4,000 people. It uses the line ‘Top dog for music, games and DVDs’, and a logo with a dog listening to a phonograph. HMV’s products comprise of CDs its largest category, DVDs, Blu-Ray discs, game consoles, games, computer hardware and software, books and posters. The UK entertainment retail market which is one of the largest and most competitive in the world has declined in the last five years by 1.2%, from £7.32bn in 2007 to £7.23bn in 2011, and by 12% in 2012 to £4.2bn, although this has been partially offset by a surge in video gaming which now makes up 40% of the market with sales of £1.93bn. Digital online sales are now the fastest growing sector of the market. The market is now dominated by Amazon with a market share of 23.4%, whilst HMV is second and its market share has declined from 42% in 2009 to 22.2% in 2013. Supermarkets, Tesco, Asda, and Sainsbury’s occupy the third, fourth and fifth positions, with market shares of 11.4%, 8.1% and 5.2% respectively. HMVs business model follows the traditional bricks and mortar approach of selling physical products in a store. However, with the advent of the internet this model has become obsolete, as CDs, DVDs, games and Blu-Ray discs have become digitised, and mostly bought and downloaded online. HMVs sales and market share has been declining since 2010. This reversal in fortune is a symptom of the wider degradation in the UK home entertainment retail market, due to...
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