You will be redirected back to your article in seconds

Circuit City buys MusicNow

Store keeping pace in retail downloadable tune war

A correction was made to this article on Apr. 4, 2004.

HOLLYWOOD — Retail chain Circuit City is acquiring online music store MusicNow in a bid to build out its own digital music service and fend off competition for its CD-selling business.

Financial details were not disclosed.

Formerly called FullAudio, MusicNow focused primarily on building digital music services for other companies until last year, when it launched its own store. One of its primary partners has been Circuit City competitor Best Buy, an alliance that’s likely to end with the new deal.

For its part, Best Buy recently announced it is working with Tower Records, Virgin Music and others to build a digital music consortium called Echo.

MusicNow has been largely eclipsed by higher-profile competitors such as iTunes and Napster, putting it in danger of obsolescence without a major new partner. Circuit City plans to use MusicNow’s infrastructure and access to major-label and independent content to build its own online music store and offer digital music in its 600 physical locations.

“In addition to being one of the leading music and electronics retailers in the world, Circuit City brings to our business an important set of resources,” said MusicNow CEO Scott L. Kauffman. “Having a company with those characteristics to support MusicNow is essential for competing in this dynamic market.”

Circuit City’s Web site currently offers digital music from partner company Liquid Audio, which is also powering the recently launched online music store of Circuit City competitor Wal-Mart. While the Wal-Mart store has received generally poor reviews, it is the cheapest online music offering at just 88¢ per track.

Circuit City didn’t say how it plans to design its new service. MusicNow’s current offering is the industry standard 99¢ per track or $9.95 per month for unlimited streaming.

Move comes as America Online’s inhouse digital music store MusicNet revealed plans to expand into Europe with the appointment of Mark Mooradian as a new exec VP based in London.

More Digital

  • JAMES FARRELL

    Amazon Names James Farrell Head of International Originals

    A correction was made to this article on Apr. 4, 2004. HOLLYWOOD — Retail chain Circuit City is acquiring online music store MusicNow in a bid to build out its own digital music service and fend off competition for its CD-selling business. Financial details were not disclosed. Formerly called FullAudio, MusicNow focused primarily on building […]

  • Super Deluxe

    Turner Shuts Down Super Deluxe, Citing Duplication With Other WarnerMedia Units

    A correction was made to this article on Apr. 4, 2004. HOLLYWOOD — Retail chain Circuit City is acquiring online music store MusicNow in a bid to build out its own digital music service and fend off competition for its CD-selling business. Financial details were not disclosed. Formerly called FullAudio, MusicNow focused primarily on building […]

  • NBA Finals Game 1 ratings Warriors

    Oculus to Stream NBA Games for Free in VR, Starting With Sunday's Warriors vs. Nuggets

    A correction was made to this article on Apr. 4, 2004. HOLLYWOOD — Retail chain Circuit City is acquiring online music store MusicNow in a bid to build out its own digital music service and fend off competition for its CD-selling business. Financial details were not disclosed. Formerly called FullAudio, MusicNow focused primarily on building […]

  • Hulu With Live TV Full Channel

    Hulu Extends Sprint Pact to Drive Live TV Subscriptions

    A correction was made to this article on Apr. 4, 2004. HOLLYWOOD — Retail chain Circuit City is acquiring online music store MusicNow in a bid to build out its own digital music service and fend off competition for its CD-selling business. Financial details were not disclosed. Formerly called FullAudio, MusicNow focused primarily on building […]

  • Nick Clegg

    Facebook Hires Ex-British Politician Nick Clegg as Head of Global Communications

    A correction was made to this article on Apr. 4, 2004. HOLLYWOOD — Retail chain Circuit City is acquiring online music store MusicNow in a bid to build out its own digital music service and fend off competition for its CD-selling business. Financial details were not disclosed. Formerly called FullAudio, MusicNow focused primarily on building […]

  • Lena Dunham, Jennifer Konner - Lenny

    Lenny Letter Shuts Down: Lena Dunham, Jenni Konner Post Farewell Note to Fans

    A correction was made to this article on Apr. 4, 2004. HOLLYWOOD — Retail chain Circuit City is acquiring online music store MusicNow in a bid to build out its own digital music service and fend off competition for its CD-selling business. Financial details were not disclosed. Formerly called FullAudio, MusicNow focused primarily on building […]

  • Lena Dunham and Jenni Konner

    Lena Dunham and Jenni Konner's Lenny Letter Is Shutting Down (Report)

    A correction was made to this article on Apr. 4, 2004. HOLLYWOOD — Retail chain Circuit City is acquiring online music store MusicNow in a bid to build out its own digital music service and fend off competition for its CD-selling business. Financial details were not disclosed. Formerly called FullAudio, MusicNow focused primarily on building […]

More From Our Brands

Access exclusive content