CD, DVD Downturn Hits Chrysalis’ Distributor; Buries Head In Books Instead

Lasgo Chrysalis, the music and film distribution arm of music publisher Chrysalis Group, has been hit by a decrease in physical CD and DVD sales this year, adding to lowered profits. The group’s preliminary results for the 13 months to September 30 reveal Lasgo made £20.9 million for the financial year, compared to £21.3 million in the previous 12 months. Though the company says those numbers by far exceed the board’s expectations, it admits Lasgo “has undoubtedly been impacted by the ongoing fall off in demand for physical CDs and DVDs”. Lasgo’s solution hasn’t, however, been to tap into the burgeoning digital download market but to bump up its distribution of books, which now account for 20 percent of sales compared to ten percent in 2007. The group overall made £54.1 million in revenue, compared to £56.4 million in 2007, and a pre-tax loss of £1.1 million.

The company admits its digital revenues “remain small”, making up just eight percent of revenue from its published music. With Woolworth’s-owned Entertainment UK‘s future looking all but over despite investment in digital this year, and the collapse of independent music distributor Pinnacle last month, you might think that physical distributors would be looking to muscle in on an increasingly competitive market while there’s still a chance of making a mark.

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