After months of testing, HMV launched its online digital music site Monday to better compete online with iTunes for Canadians’ digital dollars.
HMV, one of Canada’s last remaining music chains, began beta testing of HmvDigital.ca last November, surveying visitors and reviewing feedback to iron out any bugs.
The new site contains a “My Downloads” section that centrally stores purchased music within the site.
“So regardless of whether you’re tethered to your home computer, or whether you’re travelling, or trying to access your music remotely… or if your computer crashes, your music doesn’t go with it,” said HMV Canada president Humphrey Kadaner.
The site is available in English and French and HMV says the tracks are compatible with all digital music players, and free of DRM (digital rights management) software which prevents owners from copying or freely using a digital file across multiple devices.
A majority (98%) of consumers surveyed during the trial period responded that the MP3 DRM-free format is a “strongly appreciated special feature to the site.”
HMV has wanted to address the consumer appetite for digital entertainment for quite some time, said Kadaner, but technology stood in the way.
It was important that HMV launch a site that allowed consumers to aggregate their collection in one central location, he said.
“We felt that was really important, especially if people already have a portfolio of music,” said Kadaner. “If they had to start storing them in two different places that would make it inconvenient for consumers and might detract from them considering HMV as an alternative.”
HmvDigital.ca already offers five million tracks for download and expects to reach six million before long. On average, a single track costs around 99 cents though popular recent releases cost $1.29, and consumers can make their purchases using credit cards or debit, which is a particularly important feature for the retailer’s youth market.
“After cash, debit card payment is the most common form of payment… When you think of options for [youth] consumers they have to go ask their parents for a credit card to make a purchase online,” said Kadaner, adding that the feature is the first of its kind for a digital music site in Canada.
HMV also recently launched a new customer rewards program that enables members to collect and redeem points earned on purchases made in-store or at HmvDigital.ca.
The program was launched in the United Kingdom in May 2009, and reached over 1.1 million members in its first year. Kadaner said HMV Canada had similar membership targets for its program, but will soon readjust its goals thanks to strong early response so far.
