More physical stores sell music and video than ever before
The number of physical stores selling music, video and videogames reached an all-time record in 2014
More physical stores sell
music and video than ever before
smash 10,000 outlet barrier
UK digital entertainment
services now exceed 120
24 February 2015: The number of
physical stores selling music, video and videogames reached an
all-time record in 2014, according to new figures due to be
published in the Entertainment Retailers Association (ERA) Yearbook
tomorrow (Tuesday, February 24).
Despite a challenging physical market for CD, DVD and Blu-ray,
the number of physical outlets selling video grew by 18.8% over the
previous year to reach 10,500 while the number of outlets selling
music increased by 20.4% to 10,391. The number of games outlets
grew by 1.3% to 5,665.
The growth in the number of physical outlets comes despite the
rapid growth of digital services. Industry estimates suggest there
are now 123 digital entertainment services operating in the UK (76
music, 25 video and 22 games).
ERA CEO Kim Bayley said, "This is an extraordinary result which
means that UK consumers have a greater choice of outlets from which
to buy music, video and games than ever before. From specialist
chains and independents, through to supermarkets and fashion
stores, to internet retailers, download and streaming services we
can all now access music, video and games wherever or whenever we
Key reason for the growth in the number of physical outlets
selling entertainment is an increase in the number of supermarket
convenience stores and generalist retailers like Wilko, BHS and
Matalan selling limited ranges of music and video aimed at the
Said Bayley, "Physical outlets seem to have the edge when it
comes to impulse and gift purchases. You cannot giftwrap a download
Internet and digital sales now
The increase in the number of physical entertainment outlets
comes despite the continued momentum of internet retailers (such as
Amazon) and digital services (Netflix, iTunes, Spotify etc).
In 2014 sales through bricks and mortar outlets accounted for
just 33.9% of the £5,664.7m entertainment market with
internet-based transactions (comprising internet-ordered physical
product as well as downloads and digital services) accounting for
The videogames market is now 61.3% digital and with digital's
share of the combined video, games and music markets 49.9% digital
in 2014, 2015 looks likely to be the year entertainment becomes a
majority digital market.
Console games, video and music
streaming and vinyl albums are fastest-growing formats
While the combined video, games and music business grew by a
modest 2.3% in value in 2014, some product areas showed dramatic
Most notable was soaring growth in the games market, with
digital games up another 18.8% to £1.5bn and the impact of the
first full year's worth of sales from the next generation games
consoles, the Sony PS4 and Microsoft's Xbox One, which together
generated sales of over £500m.
But there were also strong performances from digital video
(Netflix, Amazon Prime Instant Video, Sky, iTunes), music streaming
(Spotify, Deezer) and vinyl albums.
Entertainment's next great revolution - access
Entertainment retailing has traditionally been based on selling
ownership in a disc (or a tape), but in 2014 for the first time one
third of revenues came from subscription and on-demand services
which are based on selling access rather than ownership.
Games is the biggest access category, driven by mobile
'free-to-play' in-app purchasing, micro-transactions and online
subscriptions to multiplayer online games. Nearly £1bn was spent on
accessing games in 2014, representing 40% of the games
The rapid rise of digital video subscription services like
Amazon Prime Instant and Netflix, combined with significant growth
in on-demand film and TV transactions via satellite and cable TV
operations like Sky Store and BT TV, increased video access
revenues by 17.3% to £754m.
However, it was 'all-you-can-eat' music subscription streaming
services where consumer-spend on access services grew fastest of
all in 2014. The £175m spent in the UK on accessing music via
services like Spotify and Deezer was up over 65% year-on-year.
ERA CEO Kim Bayley said, "Ever
since the birth of UK entertainment retailing in 1921 with the
opening of the first HMV in London's Oxford Street, entertainment
retailers have proven themselves to be innovators. Thanks to the
ground-breaking technology and heavy investment of a new breed of
entertainment retailers offering access services, we are witnessing
a revolution in the entertainment industry, benefitting consumers,
creators and content owners alike."
For more information please contact Steve Redmond at firstname.lastname@example.org or on 07770 924720
About the ERA Yearbook
The 2015 ER4 Yearbook, published on 24 February 2015, is the
latest edition of what has become the industry-standard statistical
resource for the retail video, games and music markets.
It draws together research from the Official Charts Company
(physical and digital music and physical video), GfK Chart Track
(physical videogames) and IHS (digital video and videogames) to
provide the definitive overview of the UK entertainment market.
ERA is the trade association representing the vast majority of
retailers and digital services offering music, video and games. Its
members range from independent record shops (Reflex, Sister Ray) to
digital services (Spotify, Netflix, Deezer, 7digital) to internet
retailers (Amazon) to specialist High Street operators (HMV, Game)
and supermarkets (Tesco, Sainsburys, Asda, Morrisons)
ERA members supply the sales data which powers the Official
Charts Company (music and video charts) and GfK Chart-Track
(videogames). Together with record companies trade association the
BPI, it owns the Official Charts Company.
ERA provides the organisational force behind Record Store Day,
the annual celebration of independent record stores which has
become the most successful new music industry promotion of the past
ERA works closely with its sister organisations in music, video
and games and is a strong proponent of open markets, open standards
and consumer choice.