June 14, 2004

Music Service

Echo Music Group Goes Way of the 8-Track, Says Report (lasted 16 months)

Echo Music Group Goes Way of the 8-Track, Says Report

LOS ANGELES (June 14, 2004) - Echo, the consortium of brick-and-mortar music retailers formed in 2003 to compete with online, digital entertainment services, has lost the backing of its seven members, according to a report from CNET News.com.

Best Buy Co., Hastings Entertainment, Tower Records, Trans World Entertainment Corporation, Virgin Entertainment Group, Wherehouse Music and Borders Group have pulled funding for Echo, in large part because online competitors so far have not overtaken nearly as much of the bottom line as traditional stores once feared, the report states. Other factors behind the decision included growing development costs and an influx of competitors offering bargain-rate services.

The reality is that compared to all the retailers bottom lines, even Apples music sales are insignificant, Alex Bernstein, a co-founder and investor in Echo, stated in the report.

Executive Technology

Posted by Craig at June 14, 2004 03:39 PM