The demise of DVDs and Music CDs has claimed the National Broadcaster's retail stores, with 50 country stores and 78 ABC Centres in other retail outlets to close.
Up to 300 staff could lose their jobs after being informed of the decision last night. An ABC spokesman said some redundancies will take place in the coming months.
The ABC will now focus on digital sales through ABC Shop Online and other commercial retailers such as David Jones. Consumer electronics retailer Dick Smith Holdings Ltd (ASX: DSH) runs David Jones' electronics departments.
It was a move that clearly was going to come at some stage. Sales of DVDs and music CDs have virtually ceased, thanks to the proliferation and wide availability of digital music and movies, the rise of retailers like iTunes and Google Play, and the popularity of 'renting' music from the likes of Spotify, Pandora and Rdio. The rise of movie and TV show streaming services like Netflix, Stan and Presto has also contributed to the demise of ABC's bricks and mortar stores.
Consumers no longer buy physical music or DVDs when the digital formats are more easily available and in many cases cheaper – although JB Hi-Fi Limited (ASX: JBH) still seems to have some success with large numbers of cheap CD and DVD bins throughout their stores.
Cuts of $254 million in funding also meant the ABC has been forced to become more efficient and eliminate those products and services that don't pass muster.
Due to rental agreements currently in place, we won't see a sudden disappearance of stores, but more likely a staggered closing as leases run out, or the ABC and landlords agree on terminating leases.
