Entertainment market keeps on growing

The home entertainment market is expanding at a rapid pace. In 2008, for example, video game sales alone increased by 20% in the UK.

Future forecasts also look strong, fuelled by the boom in online shopping, up 32% in the five years to 2008, and set to attract an even bigger consumer base as today’s computer-savvy teenagers come of age and flex their purchasing power.

A key social factor also protects the home entertainment market. 40% of DVD, CD and video game sales are made in the Christmas retail period and the traditional act of gift-giving is protecting this tangible format from replacement by downloads.

DVDs

Around 40% of DVDs purchased each year are given as gifts, while new data-intense formats (such as Blu-ray) are also well ahead of the download capabilities of the typical home computer. UK consumer spending on DVDs rose 3.6% to £2.25 billion in 2008.

Games

Sales of computer games software grew by 21.1% in 2008 – a huge increase despite the recession. New consoles such as the Nintendo Wii and developments in interactive gaming are attracting new users and driving high volume sales. The future – 3D gaming – promises to add enormous extra value as more ‘casual gamers’ explore the possibilities.

Music

While music is moving from CD to digital formats, the popularity of CDs remains strong with UK consumers spending £1.25 billion on packaged music in 2008. We’re ensuring our partners continue to capitalise on this, and the burgeoning digital alternative, by offering their customers the chance to purchase CDs and download music from their websites.