Friday Morning Business Notes
Trans World has bought a controlling stake in Mix & Burn LLC, a company that lets customers to download songs and mix their own CDs. It's part of an initiative to get digital and mobile music into its retail stores. Here's the thing: The jury is out on selling things like these in brick-and-mortar stores. Everybody wants to incorporate digital with the physical. Nobody knows how it will be done. (AP)
Listen up, majors. Word on the street is that you're screwing up left, right and down the middle. Mintel International Group Ltd is so bold to state that while iTunes has helped slow the fade, "labels still face the challenge of meeting the demands of a diverse consumer marketplace." (Digital Music News)
As for poor analysis, here's an article on Tower Records' new online book store (and music retail in general). Alyce Lomax is so concerned about "excitement" (the word appears numerous times) that the fundamental reasons behind the move is lost: Books offer more margin than CDs, and a diversified storefront is stronger than a narrowly focused one. It's not a cure-all, but it a step in the right direction for Tower's online store. After all, Amazon.com doesn't sell just books. (The Motley Fool)
As in other cities, indie music retailers are having a tough time. Many stores are hanging on, though, and one has seen an uptick in sales due to Hurricane Katrina survivors replacing lost collections. (Houston Chronicle)
Music Groups