Sunrise Records’ rescue of HMV faces uphill struggle against rapidly declining market

Commenting on the news that Sunrise Records is to acquire 100 HMV stores out of administration, Patrick O’Brien, UK Retail Research Director at GlobalData, offers his view:

“That someone has taken on so many stores is a welcome surprise, but it is difficult to see how the market for physical music and DVDs can sustain a 100-store chain in the long term. GlobalData estimates that the market for physical music and video will continue to decline, from £1bn in 2018 to just £645m by 2023. Sunrise Records will have to do more than merely increase market share of the music & video market – which is itself difficult given the continued rapid growth of Amazon Prime. It will need to get much greater support from suppliers, landlords, and widen its proposition in other categories.”

 

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