HMV turns to live music

On Sunday night, New Kids on the Block will become the first band to take to the stage at the newly christened HMV Apollo, formerly the Hammersmith Apollo. It may not be the illustrious start the new part-owners of the famous west London venue might have wanted. After all, The Beatles, The Clash and Johnny Cash all played packed-out gigs there. But it will mark an important moment for HMV.

The re-branding is the result of a joint venture unveiled last week between the entertainment retailer and Mama Group who are the UK's second biggest concert venue owner. This new company will operate 11 sites across the UK, eight of which will be in London.

As it's store sales take a battering on three fronts: from illegal downloads, online streaming technology and the consumer spending slump, HMV is tuning in to the live music scene. 

'Live music is the booming part of the entire industry, so it's logical for us to try to tap into it, harnessing the customer base we already have and also attracting younger consumers,' Simon Fox ,HMV's chief executive explains. 'In this market, we need to adapt.'

Dispite the sector being in dire straits, Fox tries to be bullish, noting that the chain still managed to sell 8m CDs over Christmas. Zavvi and Woolworths, two of HMV's biggest competitors on the High Street,  have already shut up shop.

Their demise may be good news for HMV, but it also underlines the similar struggle it faces. The chain has been quick to revamp its product range and to expand online, but total CD sales are falling by around 10% every year, with more consumers switching to downloading their music either legally, on sites such as iTunes, or illegally.

Downloading is usually cheaper - and sometimes free - and shoppers get access to their music faster and without having to leave their homes.

HMV is not the only company seeking to gain from the booming trade. Many record labels have also tried to tap into the sector. Meanwhile, O2, which took over the Millennium Dome, announced this month that it was pairing up with the Brixton Academy owner Academy Music Group to rebrand 11 venues under the phone giant's name.