Digital video revenues from providers including Netflix, Sky, Amazon and Apple reached £1,309.3 million in 2016, eclipsing packaged media for the first time.Data compiled by the Entertainment Retailers Association (ERA) shows UK physical revenues were down 16.9% to £893.6 million with both DVD and Blu-ray suffering double-digit declines.
Digital sales represent 58% of all video sales with revenues from downloads and subscription services now exceeding those of DVD and Blu-ray discs.
“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 ERA CEO Kim Bayley. “Physical entertainment retailing is clearly off its peak,” said Bayley, “but it is still a £2.2bn market. The growth of vinyl in particular shows that physical formats can flourish if they offer distinctive benefits.”
Combined sales of music, video and games are £1 billion ahead of four years ago.
Physical formats of music, video and games product declined by a total of 15% in 2016. However, gaming software grew 21.3% to £48.8 million, while vinyl records continued their sustained revival, up 56.4% to £65.6 million.
The biggest-selling video of the year was Star Wars: The Force Awakens with sales of 2.3m units.
