While entertainment spending on subscription models outstripped money spent on physical and download formats in 2016, UK music fans still prefer ownership over access, new research claims.
According to the Entertainment Retailers Association (ERA) Yearbook, access services such as Netflix, Amazon and Spotify accounted for 51.3 percent of entertainment expenditure in 2016 with 48.7 percent spent on discs and downloads.
However, despite the broader trend for subscription services, music fans still have an affection for physical formats.
Music fans spent £690m or 62 percent of their expenditure on ownership compared with £418.5m or 37.8 percent on access.
These sales were bolstered by the boom in vinyl (up another 54.4 percent in 2016 to £65.6m) and deluxe CD and box set editions.
Kim Bayley, ERA chief executive officer (CEO), said: ‘Digital may grab the headlines, but we should not underestimate the fondness of the UK public for physical formats in particular. While the vinyl revival has been well reported, millions of people still regard DVDs, CDs and console game discs as the best way to access entertainment.
‘Discs are durable, convenient and are still probably the best entertainment option for gifting.’
The number of outlets selling music and/or video has now increased in each of the past eight years and now stands at over 15,300, driven by an increase in non-traditional and convenience stores stocking discs.
In 2016 online and mobile-generated digital and home delivery entertainment revenues accounted for 77.7 percent of the £6.32bn spent on music, video and games.
Visit eraltd.org for more information.
According to the Entertainment Retailers Association (ERA) Yearbook, access services such as Netflix, Amazon and Spotify accounted for 51.3 percent of entertainment expenditure in 2016 with 48.7 percent spent on discs and downloads.
However, despite the broader trend for subscription services, music fans still have an affection for physical formats.
Music fans spent £690m or 62 percent of their expenditure on ownership compared with £418.5m or 37.8 percent on access.
These sales were bolstered by the boom in vinyl (up another 54.4 percent in 2016 to £65.6m) and deluxe CD and box set editions.
Kim Bayley, ERA chief executive officer (CEO), said: ‘Digital may grab the headlines, but we should not underestimate the fondness of the UK public for physical formats in particular. While the vinyl revival has been well reported, millions of people still regard DVDs, CDs and console game discs as the best way to access entertainment.
‘Discs are durable, convenient and are still probably the best entertainment option for gifting.’
The number of outlets selling music and/or video has now increased in each of the past eight years and now stands at over 15,300, driven by an increase in non-traditional and convenience stores stocking discs.
In 2016 online and mobile-generated digital and home delivery entertainment revenues accounted for 77.7 percent of the £6.32bn spent on music, video and games.
Visit eraltd.org for more information.
