According to Digital Music News, Tower Records "…last seen heading into bankruptcy 16 months ago, has resurrected itself and is moving into the future with surprising vigor. The company has launched an aggressive new ad campaign, and is opening remodeled flagship stores in key markets, with plans to renovate the entire chain. Tower is also laying groundwork for expansion in the digital realm…"

"When Tower filed for Chapter 11 in 2004, many industry observers wrote the retailer off for good, a victim of stiff competition from big box stores like Wal-Mart and Best Buy as well as nascent digital operations like iTunes. Tower was even viewed by some as the canary in the digital music coal mine, its demise a sign of things to come for CD sales in general."

"…Signs of things to come can be seen at recently opened superstores in Seattle and Tempe, Ariz., which feature touch-screen listening stations and a DVD selection that rivals the CD inventory in numbers and depth…"

"Though the new Tower has made its first moves in the brick-and-mortar world, it is also planning a digital initiative. The company is staying tight-lipped as to the specifics of that push, but some details have trickled out. In-store CD burning kiosks will be converted to digital download stations, where customers can fill up their MP3 players with music, for instance…"

Read the entire Digital Music News article by news analyst Michael Baker here.