ENTERTAINMENT WAS 2020’s FASTEST GROWING UK LEISURE SECTOR

Retail spending on music, video and games up 18.8% as leisure plunges 30%

3 MARCH 2021: The combined music, video and games market grew faster than any other leisure sector in 2020, according to figures revealed in the Entertainment Retailers Association (ERA) Yearbook, published today (March 3).

 

Retail spending increased by 18.3% to a record £9.26bn while the overall leisure sector – everything from hobbies, sport and eating out to holidays abroad – shrunk 29.1% due to the coronavirus lockdown.

 

The final £9.26bn tally for 2020 is £210m larger than preliminary figures first published in January indicated. It marks the eighth successive year of growth for the sector, mostly driven by streaming.

 

ERA CEO Kim Bayley said, “The entertainment market was already growing without coronavirus, but with much of the leisure sector shuttered due to lockdown, music, video and games were in the right place at the right time.”

 

 

ENTERTAINMENT WAS BIGGEST WINNER FROM LOCKDOWN

Biggest Winners

Biggest Losers

1

Music, video, games

£9.3bn

+18.3%

1

Overseas holidays

£21.3bn

-65.8%

2

Entertainment hardware

£25.7bn

+3.7%

2

UK holidays

£8.9bn

-43.8%

3

Gambling

£14.9bn

+1.3%

3

Local entertainment

£6.3bn

-40.8%

4

House and garden

£18.7bn

+1.2%

4

Eating out

£37.9bn

-40.2%

Source: Leisure Industries Research Centre/ERA Yearbook

 

Drawing on figures from Sheffield Hallam University’s Leisure Industries Centre, the ERA Yearbook records that while “in home” leisure spending of all types grew by 2.3% in 2020 to £77.7bn, “away from home” expenditure including eating out, events and holidays declined 38.6% to £154.1bn.

 

The headline 18.3% increase in entertainment spending in 2020 was the highest recorded growth rate the UK market has ever seen. Games remains the biggest single sector, accounting for 48% of aggregate sales, followed by video (35%) and music (17%).

 

ERA ENTERTAINMENT MONITOR 2020
Retail spending (
£m)

 

2019

2020

% change

Videogames

£3,764.6

£4,432.2

+17.7%

Video

£2,610.6

£3,279.1

+25.6%

Music

£1,453.7

£1,552.0

+6.8%

Total

£7,828.8

£9,263.3

+18.3%

Source: ERA Yearbook

 

The combined music, video and games markets have grown 38% since 2016. Key driver remains the growth of digital services. Fastest growing digital sector in 2020 was video, where sales soared by 37.7% to £2.9bn, driven mainly by the growth of subscription services such as Netflix, Disney+ and Amazon Prime Video. Less positively, video suffered the biggest decline in physical sales as spending on DVD and Blu-ray fell 25.6% to £372.6m.

 

ENTERTAINMENT BECOMES MORE DIGITAL

 

Physical

Digital

 

2020 value

% change

2020 value

% change

Videogames

£645.7

+7.2%

£3,786.5

+19.7%

Video

£372.6

-25.6%

£2,906.4

+37.7%

Music

£271.6

-14.6%

£1,280.4

+12.8%

Total

£1,289.9

-9.2%

£7,973.3

+24.4%

Source: ERA Yearbook

 

There were some clear positives for physical, however, with sales of video console games up 7.7% to £638.5m, driven by the launches of the Playstation 5 and Xbox Series. Meanwhile sales of vinyl LPs enjoyed their 12th successive year of growth to reach £110.1m, up 13.3%.

 

Further highlights from the ERA Yearbook:

 

  • The most popular device for playing videogames is the smartphone, used by 34.7% of gamers;
  • Steam is the most popular destination for downloading games, used by 47.7% of gamers;
  • Subscription video-on-demand services like Netflix are now the most popular way to consume paid-for video, chosen by 61.6% of the population and 82.6% of under-25s;
  • Subscription services now account for 74% of spending on video, with the number of subscriptions doubling over the past two years;
  • After years of sharp declines in sales of album downloads, spending on CD albums is three times that on downloads;
  • Sales of vinyl singles (up 21.8%) are now growing faster than those of vinyl LPs (+13.3%).

 

ENDS

 

For more information please contact Steve Redmond steve@eraltd.org (07770 924720)

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