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HMV Group:
22 December 2004
HMV Group to develop new digital downloading service with Microsoft
HMV Group plc, the UK’s leading retailer of music, video and books, today announces that it will launch its new digital downloading service in the second half of 2005, and that the software to support this is being developed in partnership with Microsoft Corporation.
HMV intends to deliver its core brand attributes of range authority, knowledgeable advice and value for money through its new service, and will leverage Microsoft’s expertise and unparalleled track record for developing consumer-friendly software for the widest possible online community.
The applications being developed for HMV’s music downloading service include a customised Jukebox, which will enable HMV digital music customers to find, buy, enjoy and manage their music online all in one place. The software and hardware required to enjoy digital downloads from HMV will be distributed via HMV UK’s network of 200 stores and online at www.hmv.co.uk
Music downloads from HMV will be compatible with the Windows Media Audio standard and therefore usable with over 75 portable players currently in the market. A range of these players will be sold in HMV UK stores, assisted by the expert and trusted advice of HMV store employees.
HMV Group expects to invest around £10 million to launch the new service, including capital investment, launch marketing and other related expenses.
Commenting on this announcement, Alan Giles, HMV Group Chief Executive, said:
“We have a unique opportunity to leverage the HMV brand, customer base and our store network to establish a strong position in the newly emerging market for paid-for music downloads. HMV Group is delighted to be working with Microsoft to create the software for this exciting development.”
Speaking for Microsoft, Alistair Baker, managing director, UK and vice president EMEA said:
“It’s great to be involved in such a leading edge retail project that will support an explosion of choice enabling music fans to buy music in-store and online - in fact anywhere - on a whole range of devices from different manufacturers. I’m delighted that the partnership extends to the development of the player, which will be constructed by a joint team from Microsoft and HMV, combining the industry knowledge of the HMV team with the software development, product expertise and consulting skills of Microsoft.”
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