HMV appoints LBi to create Facebook rival

by Kunal Dutta, Campaign 14-Jun-07

HMV has appointed the digital agency LBi to create a new social networking site to bring communities of music, game and film fans together.

LBi was awarded the brief following a three-way pitch against undisclosed agencies.

The site, which launches later this year, aims to take on leaders such as Facebook and YouTube in the social networking field, but with a focus on entertainment.

As well as virtual communities, the site will offer users a range of online film and music clips based on HMV's strong links with music, film and games companies.

Gideon Lask, the e-commerce director for HMV, said: "The HMV social networking site will be an important element in our customer engagement strategy."

He added that HMV is also in the process of appointing agencies for other aspects of the project, including content, marketing and PR.

Comments

Melvin Simpson

Melvin Simpson - 15/06/2007

This is a good way to engage with customers, and HMV certailny has a credibility in the entertainment space that will allow it to attract users, but unless it does something very special (free music?) the idea of 'taking on' MySace, Facebook et al is a bit fanciful.

 
 
 
SARAH PROBERT-HILL

SARAH PROBERT-HILL - 15/06/2007

Why would anyone switch from Facebook to HMV when Facebook has 5 years under its belt with significant numbers of users? I agree with Melvin, they would have to offer something of real interest to attract users away from their established networks - and even if they did I think it would be a temporary shift.

 
 
 
SARAH PROBERT-HILL

SARAH PROBERT-HILL - 15/06/2007

Why would anyone switch from Facebook to HMV when Facebook has 5 years under its belt with significant numbers of users? I agree with Melvin, they would have to offer something of real interest to attract users away from their established networks - and even if they did I think it would be a temporary shift.

 
 
 
Philippa Mathers

Philippa Mathers - 15/06/2007

Do we really need another community site about films and music?! I can't imagine how it could succeed. Would it not be better to partner a myspace/facebook. Or would that just be completely against the 'independence' of both sites?

 
 
 
Robin Grant

Robin Grant - 15/06/2007

HMV have lost it - what on earth makes them think that they can compete against Facebook's $38 million funding, 200 employees and 1.4 million active UK users. Surely they should be building a Facebook app, and widgets for Bebo and MySpace? And shame on LBi for keeping their mouths shut and taking the money...

 
 
 
William Doust

William Doust - 18/06/2007

I agree with Robin Grant's statement with regards to "embracing" facebook and piggy-backing off its success through widgets and the like. HMV would have to burn through millions of pounds without making any dents. With MySpace dominating the market with a share of 80.74%, followed by Facebook's 10.32% share, how is HMV going to beat this, given that bebo managed only to grab a 1.18% share, and the rest have a 0.xx%? (source zdnet:http://blogs.zdnet.com/social/?p=114) Why doesn't HMV learn from the likes of lastFM and create some facebook widiget that links to the process of listening and sharing: a funky "What I'm listening to" widget, that displayed the sleeves, somewhat like YouTube does with what people are currently viewing would be fantastic.

 
 
 
Wayne Baxter

Wayne Baxter - 02/07/2007

Can't agree more with the above comments. One reason why Facebook (and in past respects, Myspace) are so popular is because of their lack of commercialism and the fact that a majority is all based around the user. The user has pretty much unlimited control over their own profile (with legal boundaries being exceptions) and the fast popularities of social sites shows that users want to do their own thing. HMV sell entertainment to consumers.....I think they are mistaking the fact that a consumer is not a user (and vice versa) and they should stick to what they do best!!

 
 
 
Wayne Baxter

Wayne Baxter - 02/07/2007

also, following on from my above post (and i hope this sounds right), but, as an example, i rarely use myspace now.....but if i were to look for new artists, that would be my number one place (as opposed to iTunes). If i wanted to download new music though, i would switch that and go to iTunes, not myspace......they both cater (as examples) for the same kind of consumer mentality however theyre not trying to infringe on each other. Therefore HMV should look for a community partner rather than try and rival already established communities.

 
 
 
Huw Melliar-Smith

Huw Melliar-Smith - 17/09/2007

it could become one of those dinosaurs of the web, the "walled garden".

 
 
 

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