Strathfield moves into online music sales

Strathfield moves into online music sales

Strathfield Group has invested $900,000 in ChaosMusic shares in an effort to secure a place in the future of online music, adding to its current mobile electronics, computer retail and online retail operations.

While this doesn't necessarily have a great deal of impact on the computer retailing operations of the company, it does bolster Strathfield's online reach and cross-selling across the various divisions of the Group and is a significant factor in its future plans.

Holding a steady 40 per cent of the car radio market, Strathfield is keen to sell music in its stores but has had trouble in the past gaining the support of suppliers. The synergy with ChaosMusic will give them unlimited supply at minimum risk and in turn, Strathfield is offering Chaos a bricks-and-mortar operation as well as in-store marketing giving them exposure and driving people to their site.

With significant investments in autobuytel, travelonline, and eyelaunch, complete ownership of and relationships with other smaller online businesses, Andrew Kelly, Strathfield CEO, is creating a business club online to secure his niche for the future.

"All the different retail partners recommend each other, we have links into our sites. With Chaos, we'll actually be marketing car radios, CD players, MP3s and mobile phones, to their 80,000-strong database," said Kelly.

"That's what we can do today, if you take examples of what Nokia was presenting to General Motors in the US with the future of car telecommunications and how it links in with the data in the car, two way data and entertainment. All that is a reality, it's only unrealistic with the networks that are around today. So it's important for us to get our foot in the door as far as knowing where the market's headed and the Chaos move is part of that."

With Strathfield's stake in ChaosMusic up to 8.9 per cent, Kelly will take a seat on the ChaosMusic board of directors as a non-executive director.

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