Physical entertainment market grows for the first time since 2014

Data from Kantar Worldpanel suggests that physical games sales have enjoyed a surprise surge.

UK physical entertainment spend for the quarter ending September was up 2.2 per cent across all sectors, but it was video games that saw the strongest growth – 26 per cent. That offset decline of 5.4 per cent and 4.8 per cent in music and video respectively.

“It’s been a great quarter for games – a real bright spot in the physical market’s struggle against the rise of digital,” Kantar analyst Olivia Moore said. “Helped by the release of much-anticipated title Destiny, mint games – as opposed to second hand – have led the charge. 

“The market will now be looking to build on its success in the run up to Christmas, and consoles will have a vital part to play.  Early signs are promising, with 850,000 consumers looking to pick up either the Nintendo Switch or Xbox One X in the run up to the festive season.

Amazon increased its share of the physical market a little, remaining the biggest retailer with a 20.8 per share of the overall market. GAME is the sixth largest with a 6.6 per cent share, although this marked a year-on-year drop of 0.7 per cent.

Added Moore: “Argos and Amazon benefited most from the gaming revival, continuing to nip at the heels of market leader GAME.”

HMV, which is the second largest retailer at 18.1 per cent, actually bested Amazon when it came to music and video. Overall it grew its share by 2.3 per cent.

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