No Future Interrobang

[Karl Henning]

I meant to post this a month and more ago, oh well.

Newbury Comics-No Future?!

Our Company is approaching a long awaited crossroads. Behind us is our storied past of bringing cutting edge music to a highly enthusiastic, and very loyal customer base.

When John and I opened our then tiny store front on Newbury Street in 1978, we had no idea the ride we were in for! Over the ensuing years, we built stores all across the region, worked with hundreds of the most interesting and creative people you could imagine, and in the process impacted the cultural perspective of New England.

We have sold over 90 million records, CDs and DVDs, had hundreds of artist in-store appearances and employed perhaps 2400 different people through the years.

We have out lived, out witted and out lasted The Coop, Strawberries, Lechmere, NE Music City, Tower Records, HMV, Popcorn, Good Vibrations, Virgin Megastore, Circuit City and now sadly, Borders. We are left competing at Brick and Mortar with the likes of Wal-Mart and Target, and what remains of Best Buy's and FYE's media offerings.

Looking forward, we can see we surely must morph, or slowly die. There simply isn't enough remaining customer demand to support more than a handful of our stores in a few years if we don't change our mixture of goods.

Many of you have continued to support us, even as your own music consumption has shifted to online options. All of you have noticed our not so subtle shift in emphasis from pure music, to music and DVD, to now at times an odd mixture of new and used CDs + DVDs, combined with an increasing amount of pop culture and fashion items.

We recently launched a new "hybrid" store in the South Shore Plaza in Braintree, moving our store from across the street. Yeah, I know, malls kinda suck sometimes. This store features way more fashion than we have ever presented. The results are very encouraging so far, with CD + DVD sales up, along with a very strong increase in other non media categories.

We have also built our web efforts to the point where they represent 25% of our total sales, mainly through eBay, Amazon, and Punk.com. These web sales help support our overall cost structure, and may be a potential future path for the entire company.

We are right now in the process of building another hybrid superstore in the Natick Mall. The next 6 months will be critical in determining whether we have a brick and mortar store concept which will survive the steady decline in CD + DVD sales we are now experiencing in all of our other locations.

I know we can't turn back the clock, and I know we have to change dramatically over the next 3 years. The question is - What to do?! I always say the 3 most important words in business are "I don't know!"  Here's to hoping we can figure it out[....]

mike dreese
ceo and co-founder

[Cato]

Businesses which stay the same will not survive: tastes change, as we all know, for good and for ill.

Part of the problem is of course the speed of technological change: DVD's are already being replaced by Blu-Ray, and who knows what will replace them in 10 years?  3-D downloads?  Who needs a store for an Internet download?

I like having proof of the music in my hand, rather than a stream of electrons going into my computer chips.  But many trust the stream of electrons to do what they are supposed to do, and they seem to be the wave of the future.

There are protoype computers now with no keyboard: the computer projects a "virtual" keyboard onto any flat surface.  So if you work at the keyboard factory...be nervous!

[Todd]

But many trust the stream of electrons to do what they are supposed to do, and they seem to be the wave of the future.

The future . . . Now!  (Well, 2012 is almost now.)





Alas the now and the future aren't good days for the music business:





Physical media will remain, of course, but it will be less and less important and common with each passing month.  The same holds true for books, magazines, and newspapers.

[Karl Henning]

Vinyl peaked with disco, didn't it? . . .

[Todd]

Vinyl peaked with disco, didn't it? . . .

Yes, behold the power of John Travolta and The Bee Gees!

[Cato]

Thanks to Todd for the statistics!

One would think that without all the overhead costs of designing, manufacturing, shipping, and selling CD's in a store that digital downloads would increase revenues, even at $1.00 per track.

When Steve Jobs died, the Wall Street Journalhad an editorial on how he had saved record companies by offering the 99-cent download, and thereby countered Napster-style piracy.

http://online.wsj.com/article/SB10001424052970204002304576629463753783594.html

However, one person begged to differ in a letter-to-the-editor:

I had to laugh at Ed Nash's "How Steve Jobs Saved the Music Industry" (op-ed, Oct. 21), which says, before iTunes, "the stealing of MP3 files was rampant and seemingly unstoppable." True enough, but it's also true that after iTunes the stealing of MP3 files is still rampant and now clearly unstoppable.

IHS Screen Digest (my company) estimates that in 2000, the year before the iPod was introduced, CD sales in the U.S. amounted to $13.5 billion; by 2010, they had withered to $3.1 billion. Meanwhile, Apple led the building of a $2.1 billion download market. So total music sales in 2010 were $5.1 billion, down 62%.

Steve Jobs can't be blamed for that, though the replacement of the Walkman by the iPod went hand-in-hand with the abandonment of CDs for illegal downloads. The man did many great things for which he is being justly praised at his sad early passing. But saving the music industry was not one of them.

Tom Adams

Carmel Valley, Calif.

[Coopmv]

I meant to post this a month and more ago, oh well.

I buy from Newbury Comics whenever I can.  After all, it is a NE merchant ...

[Mirror Image]

I used to buy from Newbury Comics a lot, but this was back when I was still building my jazz collection. It seemed Newbury Comics were the only Amazon MP seller that had the best price for several years. But as I moved onto classical, I've bought less and less from them simply because 9 out 10 times their price just wasn't competitive with the other MP sellers. I also have noticed a decrease in Newbury's shipping speed. It seemed to have gotten slower and slower through the years and we're on the same coast!

I hate seeing a good company like Newbury struggling, but, as I have said, I don't use them because they're not competitive in what I've recently been purchasing.

[Philoctetes]

I hate seeing a good company like Newbury struggling, but, as I have said, I don't use them because they're not competitive in what I've recently been purchasing.

This kind of thinking is going to kill off a lot of really good companies. It isn't all about simply getting the best price for an item. I'd hope that we never reduce things down to just that.

[Mirror Image]

This kind of thinking is going to kill off a lot of really good companies. It isn't all about simply getting the best price for an item. I'd hope that we never reduce things down to just that.

So I should spend more money on something that I could get for less? Sorry, but your logic doesn't make any sense. As a consumer, I go with who has the best price. It's really as simple as that.

[Philoctetes]

So I should spend more money on something that I could get for less? Sorry, but your logic doesn't make any sense. As a consumer, I go with who has the best price. It's really as simple as that.

As I said, I'd hope that we'd not be that simplistic in our understanding on the movements of businesses and markets. For instance, I support my local stores over chain stores, even though the local stores are slightly more expensive. Not only am I relatively secure in the knowledge that the money I spent there is support specific people. I also can measure their contributions to the community at larger. These things aren't all about money.

[Todd]

It isn't all about simply getting the best price for an item.

Depends on the item.  Things like CDs, which are in steeply declining markets, will (and should) have price be the primary factor in determining where to buy.  Things like, say, nice furniture not so much.

[Philoctetes]

Depends on the item.  Things like CDs, which are in steeply declining markets, will (and should) have price be the primary factor in determining where to buy.  Things like, say, nice furniture not so much.

I suppose it can be viewed in that way, but I don't. I still support our local record store over the chains and the Internet. For me, I like to grow my community. Eventually, it will disappear. This sort of happened to me in regards to our local Skateboarding store. It simply couldn't compete with the online retailers, because of mentalities similar to the one that Mirror Image proffered, but I'd always support that over anything else. I don't mind paying a bit more.

[Todd]

I suppose it can be viewed in that way, but I don't. I still support our local record store over the chains and the Internet.

I fundamentally reject the 'buy local' outlook.  For some items (many/most consumer goods), it is basically pointless, and for others (local food is the best current example, though of course I always buy food from local grocery stores), it is actually destructive.  For consumer goods, unless the goods are made locally, only a small portion of any profit goes to local merchants, and while things such as wages, taxes, etc may be paid locally, I cannot see any benefit to buying from a local shop as opposed to one in, for instance, Maine.  After all, someone in Maine, or perhaps Virginia, or perhaps Stockholm, Sweden may buy some goods or services from a local company.  Obviously, services are a different matter.  And indeed, if a local purveyor of good X offers service above and beyond an internet retailer - which is not always the case, as I have found - then I will gladly pay a bit extra to shop locally (stereo gear comes to mind, excluding speakers).

[Mirror Image]

As I said, I'd hope that we'd not be that simplistic in our understanding on the movements of businesses and markets. For instance, I support my local stores over chain stores, even though the local stores are slightly more expensive. Not only am I relatively secure in the knowledge that the money I spent there is support specific people. I also can measure their contributions to the community at larger. These things aren't all about money.

There's several problems with your statement:

1. Do you even know where I live? I live in the small town NE of Atlanta, GA. We do not have any decent music stores whatsoever. The CD stores that are still here have the following: a. recordings that I don't want or b. recordings that I already have and this includes the city of Atlanta.

2. I go where there are competitive prices. Unfortuntely, none of them are physical stores, because when it comes to CDs and electronics, physical stores are losing a battle to the Internet. If you can't see the writing on the wall, then nobody can help you.

If you enjoy paying the higher price and can afford to do so, then that's your prerogative. For me, it is all about money and getting a good deal. All of the major orchestras in the United States could go under and it wouldn't effect me whatsoever because a. there would be nothing I could do about it and b. it's not like I can see them or afford to seem perform on a regular basis. Anyway, my other problem with your comments is you fail to understand my point of view. I hate to see people lose their jobs, stores close down, etc., but, at the same time, I'm not rich, so I couldn't help them anyway. Buying one CD is not going to keep a store from closing. Your heart is in the right place, Philo, but I have my own opinion and in order to get the music I want I have to go with whoever offers me the best price.

[Philoctetes]

There's several problems with your statement:

1. Do you even know where I live? I live in the small town NE of Atlanta, GA. We do not have any decent music stores whatsoever. The CD stores that are still here have the following: a. recordings that I don't want or b. recordings that I already have and this includes the city of Atlanta.

2. I go where there are competitive prices. Unfortuntely, none of them are physical stores, because when it comes to CDs and electronics, physical stores are losing a battle to the Internet. If you can't see the writing on the wall, then nobody can help you.

If you enjoy paying the higher price and can afford to do so, then that's your prerogative. For me, it is all about money and getting a good deal. All of the major orchestras in the United States could go under and it wouldn't effect me whatsoever because a. there would be nothing I could do about it and b. it's not like I can see them or afford to seem perform on a regular basis. Anyway, my other problem with your comments is you fail to understand my point of view. I hate to see people lose their jobs, stores close down, etc., but, at the same time, I'm not rich, so I couldn't help them anyway. Buying one CD is not going to keep a store from closing. Your heart is in the right place, Philo, but I have my own opinion and in order to get the music I want I have to go with the that offers me the best price.

To the first, I don't think where you reside matters all that much. The stores here, at least, will order the items for me, and I purchase them that way. Although, perhaps you don't have this option.

To the second, I see the writing on the wall, but while I can I'll support my community.

I enjoy supporting my community. The price is never my primary determinant.

[Mirror Image]

To the first, I don't think where you reside matters all that much. The stores here, at least, will order the items for me, and I purchase them that way. Although, perhaps you don't have this option.

To the second, I see the writing on the wall, but while I can I'll support my community.

I enjoy supporting my community. The price is never my primary determinant.

Talking to you is the equivalent of getting a tooth pulled. You just don't understand and empathize with my situation at all. You see things only in black/white and you fail to see the big picture which is 1. I'm a collector, 2. there is NOTHING around me that sells the recordings I want, and 3. I go where I can find the best price because I'm not a wealthy man.

[Philoctetes]

Talking to you is the equivalent of getting a tooth pulled. You just don't understand and empathize with my situation at all. You see things only in black/white and you fail to see the big picture which is 1. I'm a collector, 2. there is NOTHING around me that sells the recordings I want, and 3. I go where I can find the best price because I'm not a wealthy man.

I like how you seemingly can't detect irony.

[Mirror Image]

I like how you seemingly can't detect irony.

I like how you can't read.

[Philoctetes]

I like how you can't read.

I like how you just offered up proof of my previous post. You're so giving.