For the first time, gaming sales for the year surpassed both the video home entertainment and music sectors combined. Our business insurance experts share the full story.
According to the Entertainment Retailers Association, the gaming market has doubled in the last twelve years. Football title FIFA 19 and wild west adventure game Red Dead Redemption 2 each sold more than a million physical copies last year, though digital platforms accounted for over 70% of gaming, video and music revenues. Gaming itself saw a 12.5% growth in digital sales.
Physical sales plummeted further with DVD sales dropping by 31%, Blu-ray by 33%, and CD sales by 29%. This drop in sales turned out to be a key factor in entertainment giant HMV falling into administration just after Christmas, though digital services like Amazon, Steam, Spotify, Apple and Google are thriving in the post-physical era: 76% of all entertainment revenues come from the digital sector.
Physical sales are down for retailers across the UK as digital revenues grow
Overall, the entertainment sector recorded an all-time high of £7.5bn; the final figure does not, however, take into account free apps and games downloaded, such as the hugely popular Fortnite, which has over 200 million global users. The global gaming market is estimated at £110bn and is forecast to grow to £180bn in the next three years.
In video and music, The Greatest Showman topped both the album and video charts in 2018.