HMV and Microsoft Team Up

[Jason Dunn]

<div class='os_post_top_link'><a href='http://www.bloomberg.com/apps/news?pid=10000102&sid=auDZqyzll3Dc&refer=uk' target='_blank'>http://www.bloomberg.com/apps/news?pid=10000102&sid=auDZqyzll3Dc&refer=uk</a><br /><br /></div><i>"HMV Group Plc, the U.K. operator of HMV music stores, is joining forces with Microsoft Corp. to offer customers a service allowing them to download music from the Internet starting in the second half of next year. HMV will invest 10 million pounds ($19.2 million) in the project, which includes a customized jukebox enabling customers to locate and buy their music on line, the Maidenhead, England-based company said today in a Regulatory News Service statement. The alliance between HMV and Microsoft comes as consumers buy fewer compact discs because they can download songs from the Internet. Apple Computer Inc. has sold more than 150 million songs since opening iTunes, an online music store, in 2003. The songs can be downloaded to computers or portable music players."</i><br /><br />This is interesting to me because HMV is active in Canada - in fact, I didn't even know that HMV was based out of the UK! The things you learn from reading Digital Media Thoughts eh? :lol:

[leigho]

It sure is UK based and did you know it stands for His Masters Voice.

[Mike Temporale]

Too bad HMV is just too expensive. I don't even bother with them anymore. Hopefully, there online efforts will be more reasonably priced.

[ctmagnus]

This is interesting to me because HMV is active in Canada - in fact, I didn't even know that HMV was based out of the UK! The things you learn from reading Digital Media Thoughts eh? :lol:

I've got a pic somewhere that I took ten years ago of an HMV in London.

[Darius Wey]

This is interesting to me because HMV is active in Canada - in fact, I didn't even know that HMV was based out of the UK! The things you learn from reading Digital Media Thoughts eh? :lol:

Yep - plenty of HMV stores out here in the Antipodes too. ;)

[Lee Yuan Sheng]

So how bad is the price gouging going to be this time?

OST of a LOCAL movie - Stamped with the "IMPORTED" sticker, US$15.
Same OST; waltz into another shop not too far off - US$10

[RenesisX]

That is the strangest thing I've read all month! 8O

I have no idea what HMV are up to.

Who is building the store for them? Are they paying Microsoft to build it for them?

That would create a slight conflict-of-interest as Microsoft have their own music stores (http://music.msn.com/ and http://www.msn.co.uk/musicclub/).

I was previously on the team that created the current hmv.co.uk music store (and MSN UK) which is powered by OD2. From my experience HMV never really took digital downloads seriously (like most of the bricks and mortars) - they must have finally woken up and smelt the roses.

Well, my feeling is they've already left it far too late to compete and they are flushing their £10m down the drain if you ask me. The margins on digital music downloads are so incredibly slim that it would take them many years to re-coup an investment like that.

They aren't building that online store in-house as that's impossible, so they are outsourcing it, but I can't believe they are outsourcing it to MS.

In fact, MS didn't even build their own stores on their own - MSN UK is an OD2 platform and the MSN US one is co-developed with LoudEye if I understand correctly.

Strange, strange, strange...[/url]