ABC Shops will be phased out and closed around the country as a result of plummeting CD and DVD sales.

Up to 300 ABC Shop employees were informed of the decision in a national video hook-up last night, the ABC reports.

The ABC confirmed there will be redundancies from its workforce, which is made up of full-time, part-time, casual and contract staff.

There are currently 50 ABC Shops around Australia, and 78 ABC Centres in other retail outlets as part of ABC Retail’s brick and mortar portfolio.

A statement released by the broadcaster’s commercial arm described the move as a “phased exit” from its “portfolio of ABC Shop properties” as a result of “digital disruption”.

The ABC’s new model will focus on digital sales through ABC Shop Online and commercial retailers like David Jones.

“Customers are now getting that content through digital downloads and so all our advice is that the shops are now not making money,” ABC managing director Mark Scott told AM.

“They’ve made a lot of money over the years [but] they’re not making money now.

“It’s very hard to project them making significant money in the future and we can’t cross subsidise a retail business by taking money out of broadcasting and investing it to prop up a retail business anymore.”

ABC Retail head Regina Hoekstra said the welfare of staff will be the “primary focus” over the next few months.

“We are conscious that the ABC Shop is close to the hearts of our teams and we appreciate their ongoing hard work and dedication,” Ms Hoekstra said.

“ABC Shop is a trusted brand with a strong product offer, loyal customers and an engaged, committed team.

“ABC Retail will continue to adapt to an ever-changing retail climate in order to provide a sustainable retailing experience for our customers.”

The closure of the stores comes after the ABC lost $254 million in funding cuts, which led to the loss of more than 400 staff.