“90p in every pound” spent on entertainment now made online

Online sales now account for “90p in every pound spent on entertainment” as the sector’s revenues reach an all-time high of £7.8 billion.

The Entertainment Retailers Association (ERA)’s latest figures showed video, music and games sales jumped 2.4 per cent in 2019, topping £7.8 billion for the first time.

Digital revenues once again drove what marked the seventh consecutive year of growth in the UK, with 82 per cent of all revenues across the entertainment market coming from digital services.

Sites like Amazon, where users buy online but still receive a digital product, accounted for eight per cent of the market’s total, while bricks-and-mortar sales accounted for 10.2 per cent.

Less than a decade ago physical store sales accounted for 80 per cent of entertainment revenues.

Despite remaining the largest sector by a wide margin, gaming saw growth falter for the first-time last year seeing growth of just 1.1 per cent to £3.17 billion.

READ MORE: UK entertainment retail spend hits £100m a week

Video saw the largest growth jumping 9.5 per cent to £2.61 billion, £2.1 billion of which were digital revenues driven by subscription services like Netflix, which 49.9 per cent of the UK population now subscribe to.

Music also saw healthy growth of 7.1 per cent to £1.4 billion again driven by a 23.5 per cent increasing in music streaming services, accounting for £1 billion of the total.

“Physical entertainment still amounted to a £1.4bn market in 2019,” ERA’s chief executive Kim Bailey said.

“It is certainly down, but it is far bigger than many appreciate and still offers benefits in terms of gifting, collectability and permanence which streaming cannot match.

“While much of music spending has moved online, independents with a distinctive, locally-tailored offering continue to flourish.”

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