Sony gets Music Shops Online

1999-06-12

In the prediction game, it is reassuring to see some projections come true. The effect of the Internet on retail, for example, has been a subject of much speculation: in lunchtime discussions, most will have suggestions as to what might work, but few if any have the monopoly on the future.

Sony’s announcement today is a case in point. In association with Red Dot, Sony are to distribute their back catalogue to high street retailers via a dedicated ATM network. Customers will be able to select an album and have it pressed while they wait. For customers this is excellent news, as retailers will be able to carry a much broader range of albums; for retailers and suppliers, the future is equally bright because neither will have to manufacture or carry unnecessary stock. For these reasons, t is exceedingly likely that other media firms, such as Polygram, will follow suit.

What will the music retailer become? Well, we are back to speculation again, but it is likely that the physical store-front will stick around for a few years yet. Music retailers will still be dependent on getting the punters through the door before they can make a sale, and in the absence of pure product the focus will likely move to added value services and branding. Megastores with coffee bars, for example, are already in a position to serve as trendy places where customers can gather to discuss and possibly buy what’s on offer. We expect to see more of this but what do you think? Let’s meet up at Virgin, do lunch and talk about it.

(First published 12 June 1999)