HONG KONG (CelebrityAccess) — HMV Digital China Group an Asian subsidiary of the UK-based entertainment conglomerate HMV, announced that after a 25-year run, they were voluntarily shuttering all of their retail locations in Hong Kong.
In a public financial disclosure, HMV Digital China cited the rising prominence of music streaming as the primary delivery method for recorded music.
“The HMV Retail business in Hong Kong has faced numerous struggles and ups and downs, witnessing the rise of the record industry and the heyday of CD, VCD, and DVD home entertainment systems; but as time changes, the global development of information and economic climate have also changed, and although there were many reforms on the mode of sales for audiovisual products, they were no match against the digital tide,” HMV Digital China said in a statement.
The company also pointed headwinds in ancillary businesses, including the emergence of Apple’s Airpods as a blow to the headphone market and the seemingly “saturated” audio-visual market, leading to a steep decline in sales at their retail outlets over “the past few months.”
According to HMVDC, the drop in revenue this year was precipitous, declining by approximately 41% over the same period in 2017.
“HMV Retail has not been generating sufficient revenue to cover its own operating expenses and there is no reasonable prospect of making any significant improvement on its financial performance or operation in the foreseeable future,” the company said.
The company noted that while it’s retail operation was entering liquidation, it would continually seek new investors to back a restart of their retail business operations
HMV China Digital’s other business units include film production, international film distribution in China, a cinema business, and an artist management operation.