HMV is increasing it’s investments in the live music business. Having entered into partnership with Luminar to cross promote between live venues and their music store, and having operated a joint venture with MAMA in the same manner for just over a year, they have succeeded in obtaining just over 56% of shares in MAMA, giving them a controlling stake, and another place to promote their own artists and keep an eye on up and coming artists.
HMV
is one high street music chain that has thus far survived the decimation that has killed off Zavvi, Fopp, and other music retailers, and Luminar is a behind the scenes operator of a large group of nightclubs across the UK. According to a report in the Times ‘the two companies are discussing the possibility of setting up a small number of pilots that would involve HMV stores and Luminar clubs cross-marketing to each others’ customers.’ This seems like a smart move on HMV’s part, taking a few more of their eggs out of the physical retail market. In the light of the proposed deal between Ticketmaster and Live Nation, which if approved would sweep the board on high level gigs, it makes sense for mid level venues to start tying in with big players in the music industry for some marketing support, thereby providing another route to heavliy promoted artists, and safeguarding their territory from downward incursion.
HMV already has its own record label, and close ties into live venues, which are proving more resistant to the general slump in the music market than physical record sales.
