HMV looks to live music to boost fortunes

HMV is pinning its growth hopes on live music as it forges ahead with a restructuring of the business.

In a strategy update the firm pledged a turnaround of its Waterstone's bookstores which traded poorly over Christmas, and said it would maintain the current level of dividend.

HMV said that its transformation into an entertainment brand strong in computer games, digital downloads and live music was well underway.

The company bought Mama, owner of music venues including the Forum in Kentish Town and the Jazz Café in Camden.

It also launched a joint venture with 7digital last year.

HMV said it expects the live music market to be a third larger than recorded music by 2012.

Chief Executive Simon Fox said: "Having rebuilt profitability over the last three years, we have a clear strategy to continue the transformation of the group."