High-end street retailers of digital goods such as DVDs and CDs experienced a disastrous Christmas before 2018 ended. The industry suffered almost £250 million in losses because sales are dropping mainly due to the digital revolution. Losses in digital goods cover those physical copies of video games, films, TV shows as well as music. While there are still consumers converting their VHS to DVD, there are already those keeping up with technology thus they are even ditching DVDs.
One week before Christmas last month, DVD sales plummeted down by over 31 per cent.There was a 33 per cent decrease with sales of Blu-ray discs while there is a 29 per cent sales reduction with music CD.It was considered a nightmare by the leading music and film retailers HMV all over the United Kingdom to meet with their administrations.
Entertainment Retailers Association’s chief executive, Kim Bayley, said that they dubbed it as festive holiday from hell. The association is the governing body responsible in publishing the yearly sales as well as spending of consumers on entertainment products. It is very obvious that high street shops are struggling and this has a negative effect in the entertainment industry as a whole.
HMV said that the main culprit for the Christmas slump is the huge decline in sales of DVDs. KPMG’s partner, Will Wright, was tasked to be the administrator for the chain with a total of 125 chains. He was in charge last December 28 when the collapsed happen. According to him, the industry is suffering because of the digital disruption that is affecting the entire entertainment industry.
Over three-quarters of the sector are currently dominated by digital technology. Add the fact that Britain is currently swept by the current of internet-based programs such as iTunes from Apple, Spotify, Sky’s store and Netflix. These are the reasons why the United Kingdom’s sales in the entertainment industryhave climbed by over 9 per cent and is now valued at £7.5 billion.
For six years in a row, the entertainment industry has shown growth and this is the first time that games became responsible for over 50 per cent of the entire sales. This is a sign that VHS to DVD might become obsolete soon as we have entered the digital age and is living in it.