Zoo Digital Group looks to eBooks for salvation as DVD sales slump
Zoo Digital Media Group is restructuring its business as it admits that it does not expect to see DVD sales return to previous levels, while reporting an operation loss of $1,087,000 for the first six months of its financial year.
The company, which is now looking to develop eBooks and enter wider publishing markets, has admitted that as a result of the ‘turmoil’ within the home entertainment industry, its financial performance has been impacted, with revenue until 30 September 2011 lower than at last year, making $5.9m this year as opposed to $8.1m in 2010.
As a result of the decline in DVD sales, particularly since the summer, has included a decline in new episodic TV releases on DVD, reports the company, which made up Zoo’s greatest proposition of volume. It has reduced its US headcount and restructured its cost base to deliver lower overheads in order to deal with the decline.
However, the company has witnessed an increase in the number of titles using Zoo’s software for Blue-ray and Electronic Sell Through.
“We expect this trend to continue, although it has not yet been sufficient to offset the decline in the DVD market,” it added.
The pace of growth within the eBook market was also described as ‘staggering’ within the statement, with some US publishers reporting that 20% of their sales were now through eBooks.