Digital video sales overtake Blu-ray as market surges

The latest figures from Kantar Worldpanel show digital videos and games becoming increasingly popular with more people now buying digital videos than Blu-rays.

The data shows 4.9m people downloaded a paid-for video – either a film or TV programme – in the past year meaning digital video now makes up 13.5% of all video sales in the UK. 

While one in five games buyers, or 3.2 million people, paid for a download in the past year with 1.1 million of these bought for use on a tablet or smartphone.

Some 57% of all smartphone apps were games and 44.4% of all mobile users now use their phones for gaming

Kantar Worldpanel consumer insight director Fiona Keenan said: “Over the past year, we have seen a phenomenal rise in the popularity of tablets and smartphones. More than one in seven people have told us they now have a tablet in their household and over 52% of the population own a smartphone.

“This has meant the appetite for digital games and videos has grown rapidly. For example, 1.3 million more digital videos were bought in February than in December 2011 - a substantial increase over this short period.”

The study showed 44% of digital videos are bought through video on demand services like BT Vision or Virgin’s Movies on Demand and watched on set top boxes; however, the rise of smartphones and tablets has meant that 12% of all digital videos are now watched on these types of device.

Keenan added: “The rise of digital music over the past few years has been well documented - music downloads now account for 35% of total music sales value - which is largely a result of devices such as iPods coming into the market. We are now starting to see a similar situation in the game and video markets.” 

The news comes after Tesco purchased a 91% stake in digital music platform WE7 for £10.8m earlier this month.