The downward spiral of record companies and the music industry as a result of downloading has made itself most evident in physical distribution. What best illustrates the failure of the struggle that music retailers are now finding themselves in, is the actual closing of stores that were successful and are backed by huge companies. An example being Best Buy Company which recently closed 110 Sam Goody and Suncoast music stores.

Josh Madell of New York's Other Music closes his Boston store, which had been his only branch store. The retailer attributes the failed business venture an "Internet-piracy-heavy environment." His Boston store was specifically located in Harvard Square which has proved to be the hub of MP3 users which points to the underlying reality of the time that the majority of college students are not buying albums anymore since downloading hit the scene.