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Zavvi Digital Download Plan Bites The Dust

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Ernst & Young is canceling entertainment retailer Zavvi’s plans to launch a digital media download store. Before it fell in to administration on Christmas eve, entertainment retailer Zavvi planned to ape rival HMV’s online retail plan, reducing exposure to falling physical-format sales.

Text on the website still reads: “Coming soon - zavvidownloads.co.uk - the brand new download store from zavvi. At zavvi downloads you’ll soon find an extensive range of digital products, ready to download straight to your PC. All downloads at zavvidownloads.co.uk will be legal and secure, and you’ll have access to all our titles at the touch of a button.”

But, though in theory the brand might have continued as an online-only operator, Ernst & Young told paidContent:UK today the download store would not now go ahead. Kind of obvious - Guernsey-based Zavvi Online was being liquidated and Zavvi.co.uk, which used to sell physical media for mail order, is now a ghost town, promoting in-store discount sell-offs.

Zavvi had been trading well until Woolworths’ entertainment distributor Entertainment UK, Zavvi’s sole wholesaler, collapsed in December. Ernst & Young closed 22 Zavvi stores last week, a further 18 this week, with a total 531 jobs lost; HMV (LSE: HMV) bought 14 stores.

Jan 15, 2009 12:01 PM ET

Posted In: Entertainment, Music, zavvi

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