As reported across the web, the high street retailer Zavvi (was Virgin Megastores) has suspended CD and DVD sales from its website www.zavvi.co.uk due to the entry into administration of the distributer EUK, owned by Woolworths. This is affecting the other customers of EUK including Tesco, WHSmith, and Morrisons.
The entire industry is scrambling to acquire alternative sources of DVDs and CDs for the Christmas season due to EUK having 30% of the distribution market in the UK.
However it seems to me that the challenge here is exactly how big is that market considering the availability of digital downloads? Well the BPI puts the CD market at less than 10% of single sales but it does cover 95.5% of album sales. Figures for Video Digital Downloads are harder to come by but considering the development of that market, it is pretty much noise level at this time. Is the business failure of EUK and Woolworths an opportunity for CD Digital Downloads to take more of the whole album market to satisfy demand or is this going to increase the single download market leaving the concept of the album in the past. With regard to Video Digital Downloads, is this going to jumpstart that market into mainstream?
It will be interesting to see the post Christmas analysis on the growth in digital downloads considering that a major high street supplier has empty shelves.
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Hello, for a long time I read your blog, thanks for that that write interesting and
useful posts.I consider that blogers it is possible to name many journalists.
Good luck