Sounds music stores in liquidation - blames illegal music downloads

By Steve Biddle, in , posted: 22-Nov-2007 07:54

For those who haven't kept up with the news in the past day or so on Tuesday Icon Digital Entertainment who own the Blockbuster Video store and Sounds Music store brands in New Zealand went into voluntary liquidation on Tuesday, the first such company to enter voluntary administration under new laws that came into effect on the 1st November.

What astounds me is that the company seems to only have one explanation for this situation - illegal music downloads are apparently damaging the music business so badly they were unable to continue trading.

What BS!

Somebody tell JB HiFi who are currently in the middle of a huge store rollout program in both New Zealand and Australia that the music industry is suffering and they'll laugh at you. There is plenty of money to be made selling music. If Sounds are so happy to blame illegal music downloads then why aren't they also blaming legal music downloads? The fact that it's illegal in NZ to rip a CD to an iPod leaves people with no choice but to buy music online if they want to legally listen to music on a portable device so logically they don't want to pay for music twice - once for their iPod and again for a CD. And what about their pricing? Who wants to pay $33.99 for a new release CD from a Sounds store when JB HiFi and The Warehouse can sell me the same product for somewehre around the $22 - $25 range? With the $US at it's current level it's also cheaper to buy CD's from the USA and ship them to NZ than to buy product from Sounds.

I'm sorry that your business failed guys but don't go blaming illegal music downloads. They are the least of your problems. Despite illegal downloads existing music company executivies are still waking up each morning and going to work and running extremtly profitable businesses and there are plenty of very music retailers such as JB HiFi who are doing extremely well even with legal music downloads now taking a huge chunk of the music market.

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sbiddle's profile

Steve Biddle
New Zealand

I'm an engineer who loves building solutions to solve problems. I'll also a co-founder of the travel site. 

I also love sharing my views and analysis of the tech world on this blog, along with the odd story about aviation and the travel industry.

My interests and skillset include:

*VoIP (Voice over IP). I work with various brands of hardware and PBX's on a daily basis
  -Asterisk (incl PiaF, FreePBX, Elastix)

  -xDSL deployments

*Structured cabling
  -Home/office cabling
  -Phone & Data

*Computer networking
  -Mikrotik hardware
  -WAN/LAN solutions

*Wireless solutions
  -Motel/Hotel hotspot deployments
  -Outdoor wireless deployments, both small and large scale
  -Temporary wireless deployments
*CCTV solutions
  -Analogue and IP

I'm an #avgeek who loves to travel the world (preferably in seat 1A) and stay in nice hotels.

+My views do no represent my employer. I'm sure they'll be happy to give their own if you ask them.

You can contact me here or by email at