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Digital and Streaming Services Are UK Entertainment Smash Hit

UK records best entertainment sales since 2009

Streaming music services like Spotify have helped drive entertainment sales to their highest since 2009, according to new data from the Entertainment Retailers Association (ERA).

Music streaming sales totaled £103.1 million (more than $161 million) in 2013, a year-over-year increase of 33.7%, while digital video services, which include streaming services such as Netflix, rose by 40.2% to £621.4 million (nearly $971 million).

Based on these figures, ERA determined that entertainment sales reversed a five-year slump in the UK last year. Usage of these services is particularly driven by the young.

Looking specifically at music streaming, Kinetic conducted research in November 2013 about where UK internet users either downloaded or streamed music. The vast majority accessed digital music in the home, with 56% downloading and 44% streaming.

Streaming is definitely on the increase, with usage doubling between Q1 2011 and Q3 2013. While downloading exceeded streaming at home, UK internet users said they preferred to stream in all other locations. When not at home, 24% downloaded music, but 34% streamed.

So, as more consumers find streaming to be satisfactory, the number of at-home streamers should also increase, particularly as 4G mobile services proliferate.

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