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Internet-Derived Sales Claim 60% of UK Entertainment Market

‘Access services’ grab share from ownership model

Internet-derived sales rose 13.9% year over year in 2013 to account for 60.0% of the UK entertainment retail market, according to data published by the Entertainment Retailers Association (ERA) in March 2014. Dropping 8% from 2012, physical store sales claimed the remaining 40.0%.

Internet-derived sales accounted for around two-thirds of both game and music sales. Though video sales driven by the internet also claimed the majority, they were just 1 percentage point ahead of those from physical stores.

ERA noted that internet-derived sales included physical sales by internet-based home delivery services such as Amazon.com; however, they also included sales from video and music streaming services (for example, Netflix and Spotify), as well as in-app game purchases (for example, Angry Birds).

Thanks to the second group, “access services” grew their share of entertainment sales by 35.6% to reach 26% of the entertainment retail market, while ownership models accounted for the remaining 74%.

As UK consumers adopt music and video streaming services, and as in-app purchases rise in popularity, their preferences are shifting from owning such content to having more at their fingertips—whenever and wherever they want it, according to ERA.

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