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BizReport : Ecommerce archives : January 09, 2017

Digital services boost music, video, games sales

Investment by new digital services like Spotify, Sky, Amazon, Apple Music and Google has resulted in sales of music, video and games running £1bn ahead of where they were just four years ago, according to data compiled by the Entertainment Retailers Association.

by Helen Leggatt

Driven by subscription services such as Netflix, Amazon, Sky and Apple, UK digital revenues rose 23% in 2016 to £1.3bn, according to preliminary figures released by the Entertainment Retailers Association. It is estimated that more than a quarter of British households have a Netflix account, which costs £7.49 a month in high definition.

The video market now accounts for 58% of the market, with revenues exceeding physical sales such as Blu-ray and DVD.

Almost three-quarters (74%) of games purchases are now digital, as is 57% of music revenues whether downloads or streaming. Games make up the biggest segment of the entertainment market (£3bn) followed by video (£2.2bn) and music (£1.1bn).

"The music, video and games industries were understandably nervous about the advent of new digital services, but these figures provide resounding evidence of the benefits of our members' investment in innovation," said Entertainment Retailers Association chief executive Kim Bayley.

"To have added over £1 billion in new revenues in just four years is an incredible achievement. To put it another way, take away today's digital services and the entertainment market would be barely a third the size it is today."

Tags: digital, entertainment, music, subscription services, video

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