Virgin set to join music download market
Virgin Megastores is set to follow in the footsteps of HMV by increasing its presence in the music download market, it was reported today.
The retailer, part of Richard Branson’s Virgin Group, is to invest extra money in the online sector next year in a bid to fight the growing challenge from online retailers and supermarkets, the Financial Times reported.
The FT did not give figures and no one from Virgin Megastores was available to comment.
However, it represents more evidence of the growing trend among high street retailers to switch to the download market.
Earlier this month, Virgin’s rival HMV said it was teaming up with US giant Microsoft to develop software and hardware enabling music lovers to download their favourite songs direct to their computers.
HMV will invest about £10m (€14m) in getting the service ready for its launch in the second half of next year.
The FT said neither HMV nor Virgin expected to make a profit from the download market for several years, but added that they hoped to establish a foothold in a market which is expected to eclipse high street music retailing over time.
HMV, famous for its dog and gramophone logo, has not said how much consumers would have to pay for each song, or how many tracks would be available, compared with the stock in its 200 stores.
Music publishers and stores are increasingly embracing digital technology to counter the threat posed by illegal peer-to-peer file sharers to their sales.
Last month, entertainment group EMI reported “explosive growth” in demand for digital music, with sales of downloaded songs surging six-fold over the summer.
Demand for songs downloaded via computer has surged since Apple launched its iTunes music store in the UK, France and Germany in June.
Microsoft muscled into the market in October with its rival online store – MSN Music – which enables fans to download songs direct to their mobile phones as well as their PCs.
HMV currently provides a limited download service via its website in partnership with Bristol-based OD2, but does not offer a customised jukebox for customers to manage and listen to their music online.
