i'd rather be in haena   

or anyplace with more trees and less concrete

“Best Buy Cuts Outlook; ‘most difficult climate ever seen’”

by admin - November 12th, 2008.
Filed under: big box retail, economy, music.

In the same week that Circuit City declares chapter 11, Best Buy gives a gloomy forecast.
These two companies are largely responsible for the devaluation of prerecorded music. Their ridiculous expansion rates and loss-leader CD and appliance pricing led to the closing of hundreds of competing record stores and smaller electronics retailers. This, in turn, meant less choice to consumers due the the centralization of supply.
The major music labels (and many independent labels) played right into this scenario by lamely buying in to the pay-to-place policies of both retailers. Illegal downloading and CD ripping became common practice at the same time. Now music labels are hurting. And have nothing and no one to blame but their own greed and stodgy, stuck-in-the-seventies marketing strategies.
It’s going to be a rotten Christmas for music and gadget retail.
Oh, and just imagine– before this time next year it’s entirely possible that– in many non-urban areas– the only retail establishment where you can buy a CD will be Wal-Mart.
Pretty damned depressing.

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