UK entertainment market experiences 9th year of growth | News

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ERA’s preliminary 2021 figures show that the music, video and games markets generated a record sales total of £ 9.7 billion, the ninth consecutive year of growth.

Contrary to fears that the streaming lockdown boom in 2020 was one-off, digital feeds and sales continued to grow through 2021 with music revenues up 8.7% and video up by. 13.3%. Only games weakened with sales down 3.3%, but it was still almost 14% more than in 2019, the last full year before the Covid-19 strike.

ERA CEO Kim Bayley said: “The entire industry was prepared for revenues to stabilize in 2021 after 2020 grew by 18.7%, but growth continued – for the ninth consecutive year. “

Almost 90 cents per pound in the UK spent on music, video and games is now online. Total digital revenue grew 8.3% in 2021 to reach £ 8.66 billion.

Overall physical revenues declined 18.5% in 2021, but there was one notable exception: Physical music revenues increased 7.3%, their first growth since 2001, driven by the continued boom in sales. vinyl, up 23.2% to £ 135.6million.

Bayley added: “The return of physical music sales to growth over the full two decades since they started to decline is nothing short of a miracle. More than anything, this is a testament to the stubbornness and resilience of the brick-and-mortar, independent-run retailers who drove the vinyl revival in the face of some initial skepticism. “

Streaming video revenue from services like Netflix, Amazon Prime Video, Disney + and Now TV rose 28.2% to £ 3.2 billion.

The UK video streaming market has more than tripled in size since 2017 as more services are launched and more users adopt them.

However, the physical disk and own download activities suffered considerably. DVD, in particular, has plunged dramatically with revenues down 39.5% from 2020.

Games have been the dominant player in the entertainment industry for the past decade, but in 2021 suffered a slight setback, down 3.3% to £ 4.3 billion.

A key factor in this 2021 performance is likely the persistence of supply issues with the latest PlayStation and Xbox consoles due to the global semiconductor shortage.

The best-selling game was once again the latest edition of the FIFA football title. The new FIFA 22 sold 917,000 units on physical alone with an additional 1.3 million digital units, bringing it to over 2.2 million in total.

Bayley said: “The UK games market is more than double its size 10 years ago, with a compound annual growth rate (CAGR) of 7.8%, which is extraordinary in every way. The strong growth of mobile gaming can only benefit the market in the long run. Despite the slight setback in 2021, we can be confident that the gaming industry will continue to thrive. “

Growth in music was once again driven by subscription streaming services like Spotify, Amazon, Apple and YouTube Music, which reached £ 1.33 billion in 2021.

With around 70 pence in the pound paid by streaming services to the music industry, that means the services have delivered around £ 900million to record labels and music publishers.

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