Subscription entertainment services like Netflix and Amazon Instant Video (formerly Lovefilm) now account for a quarter of the UK entertainment market, according to the Entertainment Retailers Association (ERA).
The UK trade organisation said that ‘access services’ – which also include music services like Spotify and Deezer and in-app purchases for games like Angry Birds – grew their share of the total £5.3 billion (€6.3 billion) entertainment market to 26%, accounting for £1.377 billion in revenues.
The ERA said that internet-derived entertainment sales – including home delivery, digital download, streaming and other access services – accounted for a 60% share of sales, while 40% of revenue was generated by physical stores.
Overall, this amounted to physical store sales of £2.12 billion, down 8% on 2012. Online sales, including physical sales by internet-based companies like Amazon, reached £3.18 billion, up 13.9%.
In the video space specifically, the physical-digital breakdown was almost even with physical sales accounting for £1.02 billion and online £1.04 billion.
“This is stark evidence of the revolution in entertainment consumption being driven by entertainment retailers. The fact that 60p in the entertainment pound is now spent online and 26p in the pound is for access to content rather than ownership is a testament to the huge investment and technological ingenuity of retailers in providing consumers with new ways to enjoy the music, video and games they love,” said ERA Director General Kim Bayley.
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