HMV expands at Zavvi's expense

Gennaro Castaldo is going to have to be spread ever thinner: HMV have bought fourteen branches of Zavvi to rebrand with the dog and the gramophone and the youth-clubby feel:

The Zavvi stores it is buying are all profitable, HMV said, and are primarily in locations where it does not currently have a store.

It's spending two million, including refits, which suggests it's getting a better bargain than most people who've turned up at Zavvi stores looking for sales.

Meanwhile, the company is trying its hand at live music, paying for naming rights over the Hammersmith Apollo - soon to be the HMV Apollo - and laying plans:

Chief executive Simon Fox said the deal was "far more" than a rebranding exercise of some of the venues.

"Music is very much part of our DNA, and by extending the HMV brand into the growing live music and entertainment market, our customers will be able as never before to access and experience music in all of its forms via HMV," he said.

Among the initiatives will be HMV loyalty card holders being able to "earn" tickets to gigs as rewards.

So it's much more than rebranding. It's rebranding and flogging cheap tickets.

The MAMA Group said the deal "alters the face of the live venue business in the UK".

"The engagement of artist and fan is the key driver of the music industry and that engagement is at its most evident at live events," the firm added.

It said the venture with HMV would link tickets, music and merchandise. "A direct artist-to-fan relationship is a way to help the music industry grow and prosper," it said.

Perhaps that's true, although isn't the weak link that neither MAMA nor HMV actually represent any artists (unless you count Castaldo, of course)?

Hey... maybe HMV might think about releasing records, too. If it can get its brand back from EMI.