Now the rapid development of the Internet is accelerating the decline of traditional industries

Absrtact: Perhaps the era of collectible records is gone, and the rapid development of the Internet is accelerating the decline of traditional industries. The world's best-known music, DVD and computer game retail giant HMV, after the UK digital camera chain Jessops announced bankruptcy protection, has been

Perhaps the era of record-keeping has gone, and the rapid development of the Internet is accelerating the decline of traditional industries.

Jessops, the world's leading music, DVD and computer game retail giant HMV, was also recently decided to file for bankruptcy after being hit by the Internet downloads and unable to seek funding, following the announcement of the UK digital camera chain's entry into bankruptcy protection. At present, about 4,000 HMV employees face the risk of unemployment.

Although the Internet has made industrial changes, the days of domestic online music have not been better than the development of foreign online music. Wenyu, a consultant for management consulting, said in an interview with the Daily economic news reporter that pure online music websites are now difficult to profit and long-term development is doubtful.

Industrial Transformation Impact HMV

It is understood that HMV originated in 1921 by British composer Elgar in London, Oxford Street, founded a record retail store, after the expansion of the company, 275 stores in many countries and regions, including the United Kingdom, Canada, Japan, Singapore, China and Hong Kong and other countries and regions.

HMV's suppliers, including music makers, computer game makers and film companies, have recently refused to grant HMV3 billion. HMV management also announced earlier, financial management company Deloitte (Deloitte) will temporarily serve as HMV housekeeper, to maintain the current include in the Hong Kong, China chain of the normal business, until the official find potential buyers.

According to the June strategy management consultant War Wenyu Introduction, in the 90 's digital music appeared, 2003 itunes online, HMV gradually into the business dilemma, has closed all the German stores, the United States, Japan stores have shut down, Japan, Australia, Canada and other branches of the overall sale.

In the War Wenyu view, HMV to apply for bankruptcy protection is the industrial law and its own decision-making. As far as music and entertainment industry is concerned, the development of information technology has promoted industrial change, online sales have gradually replaced offline sales, digital music has gradually replaced the record, the single gradually replaced the album. The homeopathic Apple, through itunes, also drives the sale of terminal hardware (ipods, iphones, ipads). And always stick to the original business model of the HMV, just like the Kodak film, will eventually decline as the film business decline. In addition to the plight of HMV, Towerrecords and Virginmegastore and other record chain companies have been closed or closed.

He believes that the industrial transformation of record to digital music not only shocks HMV, and the impact of the entire record, DVD industry chain, global music, Sony Music and other record distribution giants deeply affected, leading to their own financial situation, on the other hand, global and Sony acquisition of EMI Music shares pay huge sums of money, liquidity difficulties. Moreover, even if helping HMV through the current difficulties can not help them out of business difficulties, at this time for HMV investment even difficult to recover costs.

Profit model hinders online music development

Although the pay model market potential is huge, but compared to foreign users, domestic users are already accustomed to listening to music for free, and the future profit model is not clear is hindering the development of China's online music industry.

"The barriers to access to free music are low, and they are used to using free products, and China's laws and regulations are not perfect." Foreign legal system of the comparative norms, involving intellectual property works, there are relevant legal provisions of supervision, the involved enterprises or individuals may be sentenced. "Senior observer of the Internet, Ding, editor of the Speed Network Review Center," Daily economic news reporter analysis.

CIC Consultant Senior researcher Shire that the domestic online music business model and foreign there is a big difference, most of the online music listening and downloading are free, the site mainly through the charge of advertising fees to profit. The single profit model leads to the risk of the operation of these music websites, which is difficult to operate in the long run, and has a negative impact on the development of music culture in the country.

In this respect, the war Wenyu analysis said, the domestic online music web site profit model is mainly download fees and advertising split. At present, pure online music website is very difficult to profit, long-term development is also doubtful.

The giant whale Music network, the largest authentic music website in the country, had been the focus of the industry since Yao's investment, and was even considered the most likely to be the first listed music website. The war Wenyu that its current development is not optimistic. "Whale Net 2006 on-line, the website after 3 rounds of financing, and has cooperated with Google Music, formed a sales music and advertising into the profit model." 2010 Google withdrew from the mainland market, the giant whale network has lost the search partners, and in recent years, QQ music, Baidu Music, cool, Dom, and so on a number of music platforms, such as the gradual expansion of the legitimate, giant whale network is struggling. ”