The British music retailer fell into administration last week and according to restructuring company Hilco, the situation has been heavily influenced by the ever-increasing rise in popularity of streaming services.
In a statement, the company explained: "It is disappointing to see the market, particularly for DVD, deteriorate so rapidly in the last 12 months as consumers switch at an ever increasing pace to digital services.
"During the key Christmas trading period the market for DVD fell by over 30 percent compared to the previous year and, whilst HMV performed considerably better than that, such a deterioration in a key sector of the market is unsustainable."
Meanwhile, pop star Mariah Carey recently set a new one-day streaming record with her classic Christmas hit 'All I Want For Christmas Is You'.
The singer achieved a new record on Christmas Eve this year, when her hugely popular festive hit - which was recorded in 1994 - became the most streamed song in a single day on Spotify.
According to chart data reported by Billboard magazine, the hit song was streamed a whopping 10.8 million times on Spotify throughout Christmas Eve, as people got themselves in the festive spirit ready for Christmas Day.