Games overtakes video as UK's biggest entertainment category in 2011, But video is fighting back
Online overtakes bricks and mortar in music for the first time
22 March 2012: Videogames software overtook video for the
first time in
2011 to become the UK's biggest entertainment category, according
Entertainment Retailers Association (ERA).
The figures for the ERA Yearbook published today (Thursday 22
March) show that despite
faltering physical sales of console games, digital downloads and
propelled the UK games market to sales of £1,926m in 2011, well
ahead of video
on £1,802m and music on £1,066m.
Games accounted for 40.2% of the entertainment market, compared
with video on 37.6%
and music on 22.2%.
But in the first 11 weeks of 2012, sales of video on physical
formats have been
worth more than twice those of games. Even with the addition of
is still ahead.
Kim Bayley, Director General of ERA, said, "This is a dramatic
time for the
entertainment market. It is an historic development for the games
have overtaken video last year. Video has long been the biggest
sector. Sales so far this year, however, suggest video is not going
without a fight."
Overall sales of games, video and music fell by 3.3% by value to
£4,795m in 2011.
Digital sales of games were worth £504m in 2011 compared with
digital music sales of
£333m and digital video sales of £97m, based on analysis of data
Official Charts Company, GfK Chart-Track and IHS Screen Digest.
Online and mobile delivery now accounts for 31% of the music
market, 26% of Games and
5.4% of video.
Virtually all physical formats registered falls in sales, apart
from vinyl albums (up 44%
by volume), Blu ray ( up 18.5%) and games for the Xbox 360 (up
Said Bayley, "Online and mobile are doing very well, and this
reflects the huge
investment, much of it by retailers, in producing new products and
Physical formats still account for the vast majority of
entertainment sales -
80% of albums are still sold on CD - but lack of investment and
physical product means it is increasingly under pressure."
Bricks and mortar versus online and digital
Growing sales of online and mobile downloads have combined with
surging sales by home
delivery services led by Amazon to put pressure on physical store
Digital and physical product bought online or via mobile now
accounts for 32%
of the video market and 45% of games.
The most dramatic impact has been on the music market where for
the first time in
2011, physical stores accounted for less than half of sales -
The ERA Yearbook contains full data on the UK games, video and
music markets for
2011. It also highlights key innovations by entertainment retailers
innovation in the market, including:
- HMV's listening post app
which allows users to sample tracks from more than 100,000 albums
taking a photograph of the cover with their mobile phone;
- Orange's 'Swapables'
tariff which gives users access to Deezer's streaming music
- Tesco's video locker
service which automatically gives Clubcard users access to movies
they buy on
DVD on their PCs, Macs, PS3s and other devices.
Kim Bayley said, "Retailers know that innovation is key to
maintaining consumer interest in
entertainment. That's why our members are investing heavily in new
services. The real innovation gap is in the physical market where
buy finished product from film and music and games companies. We
to lobby them strongly to innovate too."