MarketWatch reports that at least three major music companies have cut off CD shipments to Tower Records after record executives said the retailer stopped paying its bills, the Los Angeles Times reported Friday.
The newspaper said Universal Music Group, Warner Music Group Corp and EMI Group sources confirmed privately that each of the companies had stopped sending albums to the Sacramento, Calif.-based chain, which has struggled with declining sales as digital technologies have changed the way consumers buy music.
The L.A. Times, citing industry sources, said Sony BMG Music Entertainment also suspended shipments.
While the trend to digital distribution has been 10 years in the making, it appears to have blindsided Tower Records. Music retailers will have to reshape their businesses in line with digital distribution and playback, or their market will shring to oblivion.
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