U.S. News

HMV Says U.K. Music Market Deteriorating

Britain's HMV Group said music and DVD markets had deteriorated over the last three months and its year profits would be near the bottom end of market expectations.

"The value of the UK music market, including digital downloading, declined by 14 percent during October and November and the DVD market also declined in value," HMV said in a statement on Wednesday.

Like-for-like sales at its Waterstone's bookshops fell 3.7 percent in the 12 weeks to Dec. 16, while HMV Asia's sales fell 3.8 percent and HMV Canada's sales fell 3.4 percent.

"Within these very difficult conditions, HMV UK and Ireland's like-for-like sales for the 12 weeks increased by 0.6 percent, and gross margin is expected to be in line with market expectations," it added.