How could HMV survive in digital word Literature review

How could HMV survive in digital word - Literature review Example At the same time, presence of a large population of suppliers has their bargaining power related to packaging materials and recording disks (Watson and Spence, 2007). The bargaining power of retail music customers have increased substantially. Customers in the UK music sector can be divided as corporate and individual. With evolution of download services and legal streaming, the e-shops and streaming services, such as, iTunes, have become popular among consumers. As a result of rise in illegal streaming, people are currently buying lesser number of records (Wikstro, 2005). Corporate consumers in this industry include offline and online retailers involved in bulk purchases of albums from the music labels. These entities include stores like, Game and HMV, as well as online stores like, AmazonMP3, iTunes and Zune. Stringent contracts, along with increasing sources where consumers can download songs and videos illegally, have lowered the bargaining power of corporate customers (Rust, Kannan and Peng, 2002). Established and branded music labels are spending millions in test marketing, recording as well as image-development campaigns so as to ensure competency and quality of the artist, before making a public launch. These areas need implementation of special skills as well as huge access to money. Furthermore, these campaigns are supported by exhaustive distribution network and wide reach in terms of online distributing partners (Michel, 2006). These online partners are also helpful for immediate album distribution to exact locations. Also, the bigger brands can easily use their industry contacts during concert organisation, album promotion shows or for creating buzz for different artists. As these facilities are not available to newer brands, initial risks as well as capital expenditures are higher compared to that of the established brands. Then again,