In-store CD, DVD and video game sales fall

CD, DVD and computer game sales fell 19 per cent to £214 million over the 12 weeks to the end of June, at the same time as streaming revenues for the likes of Netflix and Amazon Prime Video rose.

Data from Kantar showed that High Street retailers were hit hardest by the slump, with a drop in footfall further hindering physical sales. Online rivals like Ebay and Amazon gobbled up market share, with the former’s rising from four per cent to 5.8 per cent, while the latter now accounts for one in every four pounds spent on physical entertainment products in the UK.

Argos held its market share thanks to a successful online offering, but HMV saw market share fall 3.3 per cent to 14.4 per cent, while Game fell from 8.1 per cent to 7.6 per cent.

Supermarkets also saw a decline in market share, with Tesco’s dropping two per cent to 8.3 per cent, while Asda and Sainsbury’s also saw a drops of one per cent.

Kantar consumer specialist Claire McClelland commented: “Amazon and Ebay are increasingly popular with shoppers wanting to get the latest release without leaving their homes, particularly if a traditional retailer has disappeared from their local high street.

“There’s a lot of competition out there for DVD retailers, particularly in the form of online streaming services,” she continued. “No longer just for young people, older generations are becoming increasingly tech-savvy and more confident at using these platforms and they are buying DVDs less often as a result.”

Separately, figures late last week from the Entertainment Retailers Association (ERA) showed that UK consumers spent more than £100 million a week on digital music, video and games in the first half of 2019, with a total of more than £2.7 billion going on streaming services, downloads and gaming credits.

Add in expenditure on physical formats such as CD and DVD and retail revenues of the combined music, video and games sectors grew by 4.5 per cent to £3.3 billion in the first six months, compared with the same period last year.

ERA chief executive Kim Bayley said: “Digital services and physical retailers alike continue to innovate to expand the market for music, video and games.”

Recorded music was the fastest growing sector, with growth of 9.9 per cent compared with the same period in 2018.

Music’s growth was driven by continuing strong adoption of subscription streaming services from the likes of Spotify, Apple Music, Amazon, Deezer and YouTube Music. Consumers spent £485.9 million on subscription streaming in the first half of 2019, 25.8 per cent more than in the same period last year.

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