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.
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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