‘Access Services’ Helped Drive Rise in U.K. Home Entertainment Revenue

LONDON: Home entertainment revenues in the U.K. rose 4 percent in 2013, marking the first increase in five years, driven by booming subscription sales from so-called "access services" such as Netflix and Spotify.

The Entertainment Retailers Association (ERA) Yearbook reveals that Internet-derived sales (including home delivery, digital download and streaming and other access services) accounted for a clear majority of the £5.3 billion ($8.8 billion) entertainment market in 2013. This accounts for 60 percent share of sales; the remaining 40 percent of revenue was generated by physical stores.

So-called access models include streaming services for video (Netflix, LOVEFiLM) and music (Spotify, Deezer) and in-app purchases for games (Angry Birds, Moshi Monsters). In 2013 their share of entertainment revenues grew to 26 percent while 74 percent of revenues were still accounted for by ownership models.

Kim Bayley, ERA's director general, said, "This is stark evidence of the revolution in entertainment consumption being driven by entertainment retailers. The fact that 60 percent in the entertainment pound is now spent online and 26 percent in the pound is for access to content rather than ownership is a testament to the huge investment and technological ingenuity of retailers in providing consumers with new ways to enjoy the music, video and games they love."