Music Stores Industry Overview

Excerpt from Music Stores Report

Companies in this industry operate physical retail locations that sell new prerecorded CDs, DVDs, and vinyl records. Major companies include Trans World Entertainment Corporation (operator of FYE and other branded stores), Hastings Entertainment, and CD Warehouse.

Competitive Landscape

Consumer spending and entertainment trends drive demand. The profitability of individual companies depends on effective merchandising and competitive pricing. Large companies have advantages in purchasing, distribution, finance, and marketing. Small companies can compete effectively by stocking specialty products, providing superior customer service, or serving a local market. The industry is concentrated: the top 50 companies account for more than 70 percent of industry revenue.

Products, Operations & Technology

Major sources of revenue include CDs and records (40 percent of revenue) and DVDs and Blu-ray discs (35 percent). The vast majority of music products are CDs. Other products and services include books, toys, video games, and DVD rentals. Some stores sell used CDs or DVDs. Companies may offer digital music downloads through websites or in-store kiosks.