Tower Records Declares Bankruptcy
from the industry-fallout dept
While the RIAA and the music labels make for a good target to attract (for some very good reasons), people like Kevin Laws have been saying that a big part of the problem with the music industry not figuring out how to update their business was the music retailers who saw any attempt at online distribution as channel conflict and threatened to cause problems. Considering how much business is still done through retailers, giving that all up to take a risk on online distribution is a call no one's going to make. In fact, he believes that the labels have a much better understanding on online music than we've given them credit for - but don't want to piss off their channel. Well, it looks like that channel is continuing to struggle. Tower Records' parent company has declared bankruptcy. They're not planning on closing many stores, but it might be time for them to look at other ways to reinvent their business. Of course, this is almost exactly a year after Wherehouse Music filed for bankruptcy with a long rant blaming music downloaders. The thing that's amazed me is that, as just about every company seems to be offering their own digital download store, the brick-and-mortar retailers still haven't made a big push in that direction. Virgin Music has toyed around with it, but it seems that most of the retailers really are afraid of eating away at their core business. Of course, what's happening is that others are now eating away at their core business. Update: Meanwhile, it looks like more bands are "getting it". According to Slashdot, a German band is selling their new CD along with a bonus DVD and two blank CD-Rs with the album lable on them so that fans can make two copies of the CD. Adding more value and letting the consumer do what they want with the music, while increasing the promotional value of their music. What will they think of next?