RICHMOND, Victoria (CelebrityAccess MediaWire) — Australia digital media firm Destra, has indicated that it plans to drop its entertainment division, Destra Entertainment within the next year.
Established in 2003, Destra has become the largest indie digital media entertainment company in Australia and is the parent company behind a number of record labels such as Rajon and Central Station as well as several DVD and CD distribution operations such as Visual Entertainment Group and MRA Entertainment.
Destra's content ranges from music, including Dannii Minogue, Joel Turner, Amber Lawrence, Johnny Cash to sports (AFL, NRL, World Cup Soccer), to feature films and videos including Prehistoric Park, Fast Food Nation, Amelie and Crusty Demons.
Destra reported a loss of approximately $69 million AUD in FY 2008 and is citing adverse conditions in the entertainment market as the reason for its divestment.
"The entertainment division has been adversely impacted by the current retail environment and a disappointing performance from the theatrical release films business. In addition, the global structural decline in the CD market and maturing DVD market, both of which have negatively impacted the company, have not yet been offset by growth in the corresponding digital businesses." the company said in a statement.
According to Billboard, a source at Destra has said that the firm has been shopping their entertainment division to a number of major labels and that "We're not the only ones in this boat." – CelebrityAccess Staff Writers