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Digital video retail market in the UK - Venture Insights

Report Overview

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Digital video retail market in the UK

PublisherEnders Analysis.
Publish Date September 1, 2016
Sector Digital Media, Ecommerce, Technology, Television.
Company Amazon, Apple, Facebook, Google, Microsoft, Sky Group, Sony, TalkTalk, Walt Disney.

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Consumer spend on physical retail home video content (£m)

This report looks at the current market for digital sales of audio-visual content, its future potential and the challenges that need to be overcome to realise this.

The UK retail market for digital movies has shown steady growth, but has not offset the decline in physical sales. While iTunes remains the UK market leader, Sky is clearly driving the growth with its Buy & Keep offering, backed up with the reassurance of physical product.

However, a move away from the collector mentality alongside the growth of a subscription mentality will affect long term prospects. This is not helped by the consumer proposition for digital retail, which remains disjointed, lacks inter-device operability and a clear consumer benefit.

Without co-ordinated efforts and investment from the studios, content owners and retailers to resolve these issues, we believe the opportunity for digital video retail in the UK is limited. Even with that, the EST market may never be as profitable as the DVD home video market.