Abstract
Retailers selling music and video face huge challenges, ranging from rapid price deflation to a new generation of consumers who often download music (and sometimes films) for free.
Fundamental changes have taken place since Mintel last looked at music and video retailing, including a major consolidation among specialist players. They are being spurred on by the rapid rise of technology in the home, with the arrival of broadband as a mass-market phenomenon and increasing ownership of MP3 players and iPods. The move of supermarkets into non-food categories also continues to have a huge impact, as does the growth in online sales.
The challenge for retailers in this environment is to find a way they can remain relevant to their consumers and retain a profitable share in an exceptionally tough market.
Key themes of the report:
- What is happening to the size of the music and DVD/video markets and why?
- Which retailers are best placed to survive and succeed in the future?
- How do different groups of consumers, particularly the ‘download' generation, view the online and offline retail offer available to them?
- What factors are likely to affect consumers' purchasing patterns in this market in the future?
- How much more can the supermarkets and the online players grow their share?
- What impact will new business models of distributing and selling music and video have?
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