U.K. Digital Video Revenues Surpass £1 Billion for 2015

LONDON: In the U.K., digital revenues from services such as Netflix, Amazon Prime and Sky Store exceeded £1 billion ($1.5 billion) for the first time, making it “almost certain” that video will become a majority digital business in 2016, according to the Entertainment Retailers Association (ERA).

The U.K.’s combined games, video and music markets reached an all-time high of £6.1 billion ($8.9 billion) in 2015, after a decade of decline, according to the latest figures from the ERA based on data from the Official Charts Company (music, video) and GfK Chart-track (video games). Digital services now account for nearly 60 percent of entertainment revenues in the U.K.

ERA CEO Kim Bayley said, “Ten years ago the entertainment business was on the edge of a precipice. Piracy was rampant and there were few legal alternatives. Thanks to huge investments by the likes of Apple and Steam and Netflix and Spotify, there has been a significant turnaround. From indie record stores to video on demand, from High Street chains to streaming services, internet retail and supermarkets, there has never been such a wide variety of ways for people to get the music, video and games they want.”

Total U.K. video revenues for 2015 came to £2.24 billion ($3.3 billion), up 1.5 percent year-on-year, according to figures compiled by IHS on behalf of the British Video Association. Within this, digital video accounted for £1.085 billion ($1.59 billion), physical retail for £1.075 billion ($1.57 billion) and physical rental for £76.9 million ($112.5 million).