Entertainment scores its best year ever as music, video and games revenues surge through the £6bn barrier

Discs have a good year as vinyl booms and CDs hold their own


Entertainment scores its best year ever as music, video and games revenues
surge through the £6bn barrier 

Discs have a good year as vinyl booms and CDs hold their own 

Adele's 25 pips FIFA 16 to become hit of the year  

6th January 2016

Surging digital revenues pushed the UK's combined games, video and music markets to an all-time high of £6.1bn in 2015, finally shrugging off a decade of decline, according to latest figures from the Entertainment Retailers Association (ERA) based on data from the Official Charts Company (music, video) and GfK Chart-track (videogames). 

Entertainment sales reached £6.04bn in 2004, but that peak was then followed by years of decline, hitting a low point of £5.2bn in 2012 in the face of the impact of the internet and the closure of High Street names like Woolworths, Our Price and Virgin. 

Latest figures, however, suggest that substantial investment by new digital retailers and services is finally helping the industry turn the corner.

 All three entertainment sectors registered growth last year with video up 1.5%, music up 3.5% and games up a striking 10%. 

In each sector, it was digital services driving the growth: 

·        In music, streaming services such as Spotify, Google Play Music, Apple Music, Deezer and Amazon Prime Music increased sales by nearly 50% to £251m over the year; 

·        In video, digital revenues from services such as Netflix and Amazon Prime and Sky Store exceeded £1bn for the first time, making it almost certain that video will become a majority-digital business in 2016;

 ·        And in games digital revenues from online and mobile services - which are more than those of music and video put together -grew 17% to £1.9bn.

 Digital services, many of them developed by ERA members, now account for nearly 60% of entertainment revenues in the UK. 

ERA CEO Kim Bayley said, "Ten years ago the entertainment business was on the edge of a precipice. Piracy was rampant and there were few legal alternatives. Thanks to huge investments by the likes of Apple and Steam and Netflix and Spotify, there has been a significant turnaround. From indie record stores to video on demand, from High Street chains to streaming services, internet retail and supermarkets, there has never been such a wide variety of ways for people to get the music, video and games they want." 

For full market figures see below   

 Discs have a good year as vinyl booms and console games show growth 

While digital generated most growth in 2015, established disc-based formats remained the formats of choice for millions. 

Vinyl album sales continued their relentless surge up 65% on 2014 to £42m, but remain a niche taste, accounting for just 6% of the album market. 

Strikingly, console software driven by the Xbox One and PS4 platforms more than held its own in the face of booming growth in digital games, showing an increase of 1.6% to £866m in 2015. 

Meanwhile the compact disc - launched in 1982 - enjoyed its best year in a decade declining just 3.7% and generating sales of £468m.

Compact discs are proving much more resilient than music downloads, the format which was tipped to replace them and which is now clearly well off its 2013 peak, declining in value 13% to less than £300m in 2015. 

Said Bayley, "It is clearly way too soon to write off the CD or other disc-based formats. Hopefully we have now all learned the lesson of the vinyl LP that older formats can happily co-exist with newer ways of enjoying entertainment. The fact is that different formats provide different benefits to different groups of entertainment fans. That diversity is proving to be the entertainment market's  greatest strength." 

 Music: Physical / Digital - The Official Charts Company. Streaming (subscription only) - BPI.

Video: Physical - The Official Charts Company / BVA. Digital - IHS estimates (including EST, TV-VoD, web-based VoD and sVoD services).

Games: Physical - GfK Chart Track. Digital - IHS estimates (including digital online, mobile and tablet gaming).

 Adele's 25 pips FIFA 16 to become hit of the year

 The biggest entertainment hit of the year was Adele's25, released on November 20, which sold just over 2.6m copies in the six weeks to the end of the year.

 It narrowly beat gaming perennial,FIFA 16,whose latest edition released in September sold 2.5m copies. 

Overall the Top 20 entertainment titles included six music titles, five games and nine videos, led byPaddington. 



Source. Music - Official Charts Company with 5% upweight on physical copies. Video - Official Charts Company. Games - GfK Chart-track 

For more information, please contact Steve Redmond, steve@eraltd.org 07770 924 720 

About ERA

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 two decades.

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.


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