Booming subscription sales bynservices like Netflix, Lovefilm, Spotify and Deezer mean so-called “access services” rather than sales of products like discs and downloads accounted for a quarter of the entertainment market in 2013, according to new figures revealed in the Entertainment Retailers Association (ERA) Yearbook.
But the physical store market remains vibrant with the numbers of outlets stocking music and video reaching an all-time high, and independent retailers in particular thriving.
“Access models” include streaming services for video (Netflix, Lovefilm) and music (Spotify, Deezer) and in-app purchases for games (Angry Birds, Moshi Monsters). In 2013 their share of entertainment revenues grew to 26% whilst 74% of revenues were still accounted for by ownership models.
Overall internet-derived sales – including home delivery, digital download and streaming and other access services – accounted for a clear majorityof the £5.3bn entertainment market in 2013, according to ERA figures, with a 60% share of sales. The remaining 40% of revenue was generated by physical stores.
ERA Director General Kim Bayley says, “This is stark evidence of the revolution in entertainment consumption being driven by entertainment retailers. The fact that 60p in the entertainment pound is now spent online and 26p in the pound is for access to content rather than ownership is a testament to the huge investment and technological ingenuity of retailers in providing consumers with new ways to enjoy the music, video and games they love.”