The UK entertainment retail sector - which includes retailers and digital platforms in music, video and games - saw total revenues grow by 7% in 2023 hitting £11.87 billion, according to new figures from trade group ERA.
Music was up 9.6% to £2.22 billion, but video scored the highest level of growth at 10%. So much so, video - with total revenues of £4.92 billion - is now the most lucrative strand of entertainment retail once again, gaming having been on top for a decade.
Digital platforms dominate in all three strands, although - in percentage terms - physical product sales are strongest in music. Vinyl album sales generated £177.3 million last year, up 17.8% on 2022. And while CD sales were down in terms of units sold - according to the recent BPI stats - revenues were actually up 2% to £126.2 million. Total physical sales in music were up 10.9%.
Nevertheless, streaming accounted for 84% of music retail revenues in 2023. Streaming services generated £1.87 billion, up 9.8% on 2022. And that helped music retail revenues at large grow 9.6% to £2.22 billion, the highest achieved since 2002, just before the 2000s slump.
In video, digital platforms now account for 96% of revenue, with DVD and Blu-ray sales down again, together generating £169.7 million, while digital brought in £4.74 billion. Those digital revenues were up 11.6%, meaning video revenues overall grew 10% to £4.92 billion.
Although the gaming sector also saw growth in 2023, again thanks to digital, revenues were growing at the slower rate of 2.9%. This means - with total revenues of £4.74 billion - gaming is now behind video, after many years of outperforming the other strands of entertainment retail.
Across all of entertainment retail, revenues topped £11.87 billion. And, having now achieved eleven consecutive years of growth, despite challenging economic conditions, the sector is “defying gravity”. Or so says ERA Chairman Ben Drury.
“Due credit should go to the amazing creative talent behind the movies, music and games we all love”, he adds. “But we should also recognise the huge contribution of the digital services and retailers who have reinvented the entertainment experience for consumers over the past fifteen years. The overwhelming majority of the money raised by digital services and retailers goes direct to the content owners, and their success is directly benefiting creators”.
Those stats in full:
UK entertainment sales 2023 (£m)
| Music | 2022 | 2023 | % change |
|---|---|---|---|
| Physical | 280.4 | 311.0 | +10.9% |
| Downloads | 45.4 | 42.7 | -5.9% |
| Streaming | 1699.1 | 1866.2 | +9.8% |
| Total | 2024.9 | 2219.9 | +9.6% |
| Video | 2022 | 2023 | % change |
| Physical Retail | 290.0 | 169.7 | -18.8% |
| Physical Rental | 9.9 | 5.6 | -43.7% |
| Digital | 4248.4 | 4739.7 | +11.6% |
| Total | 4467.3 | 4915.1 | +10% |
| Games | 2022 | 2023 | % change |
| Physical | 517.9 | 495.0 | -4.4% |
| Digital | 4086.5 | 4241.8 | +3.8% |
| Total | 4604.3 | 4736.7 | +2.9% |
| All Entertainment | 2022 | 2023 | % change |
| Physical | 1017.2 | 981.3 | -3.5% |
| Digital | 10079.3 | 10890.4 | +8.0% |
| Total | 11096.5 | 11871.7 | +7.0% |
How entertainment has flourished through pandemic and recession
| 2019 | 2023 | % change | |
|---|---|---|---|
| Video | 2610.6 | 4915.1 | +88.3% |
| Games | 3666.2 | 4736.7 | +29.2% |
| Music | 1599.4 | 2219.9 | +38.8% |
| Total | 7876.2 | 11871.7 | +50.7% |