Tower Records has become the latest victim of technology, questioning the viability of brick and mortar companies over online distribution. Tower Records' recent failure reemphasizes that the future of music distribution belongs to the Internet.

Online music distribution, whether existing on free P2P networks or industry sanctioned networks, is one of the most popular aspects of the Internet today. Free P2P networking has become a household name, as clients such as Kazaa, WinMX and BitTorrent help distribute vast quantities of music.

But online distribution doesn't end there. So-called "legitimate" services have also sprung into action. While most lack the vast catalog of free P2P networks, Apple's iTunes has managed to become a success story. Catering mostly to Apple users, iTune's helps millions of music fans get in touch with the artists (or at least some of them) they love.

Whether you favor free P2P networking or "legitimate" services, all indications emphasize that more people are turning to the Internet for their music needs. Brick and mortar companies such as Tower Records were great in their day, as it was one of the few methods the last generation had for getting the music they wanted.

But times have changed and so has the way we listen to music. Today’s generation of music fans have identified the home PC as an essential aspect of musical entertainment. Most people who own a computer use it to play music files or CDs. The convenience and ease of computers force many to question why people should go to music stores when you can fire up iTunes or SoulSeek and avoid the hassle of a sold out albums, lines or over priced CDs.

According to Reuters, Tower Records has suffered substantial losses over the last year:

“In a regulatory filing last April, MTS (Tower Records parent company) reported debt of $441.9 million, including $194.5 million in bank and bond debt, along with $247.4 million in operating leases.

Sales for the nine months to April 2003 fell 9 percent to $429 million, while losses rose 47 percent to $36.3 million, said MTS in the filing.”

Fortunately for Tower Records, the bankruptcy will not lead to any “significant” layoffs or store closings. However, the kink in the armor of brick and mortar CD stores is widening as the Internet, whether “free” or “legit” becomes the mainstream choice for millions.

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Authorized Music Store :: Other

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