Why HMV survived every music revolution. Except one.

Published 27 July 2026

HMV’s decline could be presented as a simple failure to adapt to digital music. But that overlooks an important detail: adapting was exactly what HMV had always done. 

Since its founding in 1921, it had successfully navigated multiple format changes. Vinyl records became cassette tapes, which then gave way to CDs. Each transition required the business to evolve, and it did. So why did the digital revolution pose such a challenge for the business that had repeatedly proven it could overcome format changes?

For the first time, customer experience changed too. 

HMV’s story raises an important question for all businesses to consider: are you improving what customers need, or simply improving what you already do well?

The joy of going into a HMV story was you didn’t have to know exactly what you were looking for. There was always the possibility of discovering something unexpected. I personally have found what have become staples in my family’s rock out playlists that way. Gogol Bordello’s Gypsy Punks album is a prime example. It’s more than a bit whacky and made me laugh out loud when I put it on for the first time hoping to reinvigorate a long, boring commute home. It definitely did just that. 

It was part of the excitement, at least for me, to be able to browse through albums, listen to something unfamiliar, or ask someone behind the counter for a recommendation. 

For decades, HMV understood that experience better than anyone. 

The problem was that the way people experienced music was, once again, changing. 

Sometimes customers can genuinely love what you provide, but the experience they value gradually changes around you. 

At its peak, HMV was one of the most recognisable names in music retail. Customers valued the ability to browse, discover, and physically engage with music.

And so, it continued improving its stores, expanding its product range, and constantly creating a better version of the experience it had built.

But, the rise of digital downloads and streaming changed the customer experience entirely. People no longer had to travel to a shop or purchase one album at a time. Suddenly, they could access almost any song instantly from anywhere. HMV was facing a new challenge; customers were beginning to value something different.

People did not stop loving music. But they stopped needing to buy music in the same way. 

HMV wasn’t failing because it ignored customers. It had spent decades understanding them. It knew people enjoyed music discovery, and expert recommendations. 

But it was continuing to optimise on an experience that customers were moving away from. 

When something works, it is natural to improve it. You invest more, refine processes, and become more efficient. But improvement only creates value if it is focussed on the problem customers still need solving and still care about. 

In 2013, HMV entered administration for the first time, ending decades as one of Britain’s most recognisable entertainment retailers. The decline was caused by the fact that customer experience had moved on. 

The lesson is not that businesses should abandon what made them successful. Instead, it shows us that success requires continually asking a more difficult question: “What job is the customer actually trying to accomplish?”.

Music was never about CDs. It was about listening. Once the customer experience changed, the businesses that understood the shift were the ones that survived. 

At EmpowerPath, we help you look beyond what you provide and examine what customers are truly trying to achieve. By tracing those experiences, we can identify the real causes behind what is working, and what is no longer working. 

Success comes from understanding what your customers need next.