BICESTER, UK (CelebrityAccess) – Utopia Distribution Services (UDS) and DP World, a leading global end-to-end supply chain solutions provider, are set to open the UK’s most extensive distribution warehouse for physical music and video at the end of August.
Located in Bicester, Oxfordshire, the 25,000 sq meter site, operated by DP World, will now become the de-facto center for music and home entertainment distribution in the UK. The Center will handle 70% of physical music and 35% of home entertainment products sold in the UK annually – approximately 30 million units, including vinyl, DVDs and CDs. It will service a plethora of UK retailers such as Amazon, HMV and over 400 indie record stores, as reported by hellenicshippingnews.com.
MBW.com reports the center will be driven by 80-plus state-of-the-art ‘pick robots,’ with a daily handling capacity of over 100,000 units, increasing over time.
The warehouse will employ 240 workers, significantly expanding DP World’s unit handling capacity across its UK operations – facilitating new growth opportunities in the warehousing sector.
This is borne out of physical music’s ongoing role in chart success, with 23 out of 25 UK No. 1 albums released topping the album chart off the back of most physical sales. Globally, market leader Universal Music Group (UMG) reported an 18.3% year-on-year increase in physical revenue for the first six months of 2023.
The UK’s home entertainment market saw its 10th consecutive year of revenue growth in 2022. Physical video retail grew to £209m, with Blu-ray and Blu-ray 4k UHD sales now over 40% of the total market (ERA).
Utopia Distribution Services and VP of distribution services, Utopia Music, said: “We’re pleased to be working closely with DP World on a smooth transition to our new state-of-the-art facility. With UDS distributing over 50% of the UK’s combined music and video market, our investment in this infrastructure marks a bright and exciting future for physical entertainment.”
Jonathan Himsworth, vice president of sales at DP World Logistics, added: “DP World brings together an unparalleled combination of assets and expertise to build creative solutions to the hardest problems in logistics, and this is why so many of the world’s largest and most recognizable brands trust us to deliver on their supply chain needs. To this end, we are very excited about working with Utopia to support the renaissance of physical music in the UK.”
Sophie Jones, BPI chief strategy officer, said: “Demand for albums on vinyl just keeps growing, while there are positive signs the long-term decline in CD purchasing is slowing and starting to bottom out. Both formats support a strong and healthy physical sector that is essential to the UK’s vibrant music economy led by streaming.
“This huge new warehouse and the investment it represents makes a welcome commitment to British music’s infrastructure and distribution channels that will help sustain the growth in demand for music on physical format for the foreseeable future and beyond.”
Kim Bayley, CEO of the Digital Entertainment and Retail Association (ERA), said: “CD, vinyl and DVD are still a vital part of the entertainment market. Moving over 50% of the UK’s music and video stock to a new warehouse was never going to be easy, but ERA and its members applaud UDS for the tremendous effort going into the move. We look forward to a smooth transition and the benefits this huge supply chain investment will bring.”
Liz Bales, CEO British Association for Screen Entertainment (BASE), added: “Physical formats are such an important part of Home Entertainment, so it’s fantastic to see this continued investment in an area of the business that has served consumers so well for so long, allowing them to own and keep the shows and films that they love. The exceptional value of DVDs and the superior at-home experience of 4K UHD support the ongoing appetite for these formats with audiences. We look forward to working together in the future.”
Utopia Music’s other physical distributor, Proper Music Group, will continue operating from its Dartford warehouse.
