UK retailers of digital entertainment products have been rewarded for their sustained effort to keep up with the times. According to a report published yesterday by the Entertainment Retailers Association (ERA), UK digital entertainment sales made it across the £1 billion threshold in 2012, achieving that feat for the first time.
The precise number is £1.033 billion, which represents the amount generated by music, video and game sales. It stands 11.4% above the proceeds collected in 2011 and means that digital products were responsible for 25% of overall entertainment sales.
Kim Bayley, director general of the ERA, pointed out that UK digital entertainment retailers had reaped the rewards of their massive investment in new services, making it possible for consumers to shop on multiple platforms. Retailers have been working hard to facilitate purchases from new devices, most notably smartphones and tablets, and have been creating innovative digital services to deliver the optimum shopping experience. This commitment has paid off and consumers can now buy their entertainment products at any time and from any place. Bayley went on to note that the 2012 revenue figure looks even more impressive when one considers the fact that it does not include the contribution of online streaming services such as Spotify, Deezer, We7 and Rdio.
Games continued to account for the bulk of digital entertainment sales, generating £552.2 million. Video took the lead in terms of growth rate (20.3%) but that is largely to do with the relative immaturity of this market segment. Music put in a noteworthy performance with growth of 15.1% - quite a remarkable achievement for what is the most established market segment.
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