By Dave Goosselink
The popularity of digital downloads, both legal and illegal, is forcing the music industry to adapt to survive.
Retailer Marbecks is aiming to ride out the storm by growing its market and encouraging customers to spend more time in store.
The Marbecks name has been around for 75 years. Originally an Auckland institution, the brand has now replaced the old CD & DVD Stores across the country.
With the music industry under pressure, the company is fighting back, launching the first of its new format entertainment stores in Dunedin.
There's a wider range of products on offer, and customers are being encouraged to stay longer with touch-screen music listening posts, books to browse, and an in store cafe boasting free wifi.
"I've been watching people on our new touch-screens, sitting down, listening to music on the touch-screen, having their coffee, and then going up and buying the CD later at the counter, which is perfect," says Roger Harper, Marbecks managing director. "That's just what we want."
Adam Holt, head of Universal Music, agrees innovation is what's needed to survive.
CD sales have dropped by over 30 percent in the past few years, although there's still a strong market for the blockbusters and music appealing to an older demographic.
"However in 2009 it's been an amazing year," says Mr Holt. "I mean, Michael Jackson's death obviously sold a lot of records, and Susan Boyle is just breaking all records, Lady Gaga's had an enormous year."
But the rise of both legal and illegal downloading has hurt retailers as younger customers ditch CDs and DVDs for digital.
Marbecks has a plan to recapture some of those sales. Customers will soon be able to buy songs in store, downloading them directly to their digital music players.
"You know in the old days we used to sell singles," says Mr Harper. "No singles anymore, it's all digital downloads. So if you have that impulse you'll be able to buy the song in store, just when you're thinking about it."
The company's new generation retail stores will be rolled out in the main centres over the next year.
3 News