Bankrupt Record Chains

[Karen Newcombe <kln@staralliance.com>]

Something we've never really heard much about here is the demise of
national record store chains.  So far Camelot, Wherehouse, Peaches, Record
Giant, Strawberries, and several others have closed and filed bankruptcy.
Musicland may be next.  Now the FTC is investigating the record industry
for price fixing on CD's.  

What the heck happened?  There is a fascinating, but long, article in the
August 4 issue of Fortune Magazine explaining how BEST BUY stores
single-handedly began the chain of events that would drive the major U.S.
music retailers -- and countless independent stores -- out of business.  

It is worth reading and is a fascinating look at what goes on inside the
music distribution industry.  I'd send the whole article but it's much too
long.  

One significant issue they ignore is that of the aging population. With
most new albums oriented towards the shrinking teen to 20's market, the
largest and most affluent market -- people over 35 -- is generally
neglected by the music industry.  It will be interesting to see how the
music industry reacts as the population ages and the number of teens drops
significantly over the next 20 years.  

Karen  kln@staralliance.com