2 January 2013 | Team Tamar

Online vs. High Street – The Fight Continues…

2012 saw the highest annual total spend on digital entertainment ever. Over £1bn was spent on digital films, music and games. Director of the General Entertainment Retailers Association, Kim Barley, said that breaking the £1bn barrier was “an incredible achievement. This reflects retailers’ huge investment in new and innovative services, which means you can buy music, video and games literally at any time of the day and wherever you are.”

• 11.4% increase in digital entertainment since 2011
• ¼ of the entertainment market is now digital
• 8% growth seen in digital video sales
• £552m digital video sales
• ½ of all digital sales were video
• 20% rise in downloaded films
• 15% rise in downloaded music. However,
•  ¾ of entertainment sales are still on disc


While it’s evident that digital downloads are both convenient and instant, people still value the quality of a physical product, which is reflected by three quarters of all entertainment sales still being on disc. Yet, as people turn to online shopping, high street entertainment sales are still rapidly falling and the rise in downloads is not making up for this.

However, the drop in high street sales isn’t reflected across all industries.

The UK’s largest department store chain, John Lewis, has said that in the five weeks up till the end of December sales rose by 13% in both stores and online. Although sales were good across both platforms, the internet sales growth was particularly strong rising by 44% since last year, which accounts for around 25% of the company’s total sales. Managing Director, Andy Street, said “In an economic climate which continues to be volatile, to have achieved these results is testimony to the strength of the John Lewis brand and the commitment of all our partners to give outstanding service.”

It’s evident that people still enjoy the experience of shopping in stores, but it’s clearly becoming product dependent. With the rise in smartphone, tablet and apps, shopping online is becoming easier, year on year. Online sales are still growing, and this could lead to some industries, such as the entertainment industry, becoming obsolete on the high street within years.

Team Tamar