HMV calls £24m media pitch

OMD UK currently handles the £19 million HMV business, while its

sister Omnicom agency PHD oversees the £5 million Waterstone's
account.

Both agencies have been invited to repitch for the business alongside a
number of other undisclosed agencies.

The media review follows recent financial results from HMV that showed a
first-half loss of £31.8 million and put its new chief executive,
Simon Fox, under pressure to deliver cost savings.

In December 2006, HMV issued a warning that its Christmas sales would be
lower than expected, owing to a weak music chart and competition from
music file downloading. However, in the five weeks to 6 January, the
retailer did manage to improve group sales by 10.3 per cent.

Fox, who replaced Alan Giles last September, said that market conditions
remain "very difficult".

Last year, HMV held a creative review and added Quiet Storm to its
roster. The agency created a brand campaign that ran last autumn, after
being appointed by the marketing director, Graham Sim. The agency
Beechwood also works on creative projects for the retailer.

A HMV spokesman said: "In keeping with HMV Group's current strategic
review for the business aimed at delivering group synergies, HMV and
Waterstone's confirm that they are looking to appoint a joint media
agency to manage their respective media purchasing requirements in
future.

"A shortlist of agencies has been compiled, including the two incumbent
agencies, OMD UK and PHD, both of which have been invited to pitch for
the new combined account. An announcement regarding the selection of the
successful agency will be made in due course, but is likely to be by
Easter."