U.K. Home Entertainment Biz Climbs 4%; First Rise in Five Years

LONDON — Revenues generated by the U.K. home entertainment biz rose 4% to £5.3 billion ($8.79 billion) last year, which reps the first increase in five years.

Internet-derived revenue — including home delivery of physical product and revenue from online subscription services — rose 13.9% to £3.18 billion ($5.27 billion), and accounted for 60% of the market, according to the Entertainment Retailers Assn.

The fastest-growing segment of the online market was for “access” services, where consumers stream content rather than purchase it, like Netflix and Spotify, and in-app purchases for games like “Angry Birds.” Biz for this sector grew 35.6% to £1.38 billion ($2.29 billion), and reps a 26% share of the total market.

Video subscription services such as Netflix and Amazon’s Lovefilm, which has been rebranded as Amazon Prime Instant Video, saw revenues grow by 120%. Music streaming services like Spotify and Deezer were up 34%.

The sale of physical products from retail stores was down 8% to £2.12 billion ($3.51 billion), and repped 40% of the market.

The best-selling video of the year was “Skyfall,” which sold 2.96 million units. The biggest-selling videogame was “Grand Theft Auto V” with 3.67 million units.

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