BBC News reports us that video rental giant
Blockbuster has quit its plans to enter the Chinese market because of piracy.
Asian piracy rates are high and as a result people don't often rent a video
anymore. Because of this Blockbuster has decided to close its Hong
Kong stores during the next 18 months
and as a result two hundred employees will lose their jobs.
 A Blockbuster Hong Kong spokesman said high rents were a factor,
but pirated films were a major problem. Pirated movies
are available in Hong Kong for as little as HK$ 10
(70p).
"Hong Kong has always been one of the
film capitals of Asia, but it has been a very expensive market to develop
and operate," Blockbuster International President Chris Wyatt said in the
statement.
Blockbuster Hong Kong spokesman Michael
Wong said the costs of rent in the former British colony were the highest
Blockbuster faced in Asia.
The chain has had stores in the
Chinese territory since 1999, and saw a presence in Hong Kong as a
precursor to moving into the Chinese mainland. It said expected returns from the Chinese market meant it was a
poor investment. |
Thanks Quakester2000 for reporting this
via our news
submit!
Source: BBC NEWS
