The changing entertainment market

Retail Week, The Grocer, The Bookseller and others have all reviewed Kantar Worldpanel‘s latest analysis of the UK entertainment market, which focuses on the 12 weeks through to mid-June.

Despite all this coverage, there is a some vagueness as to what is and isn’t included in their definition of entertainment.  As far as I can tell, however, we are looking at:

– CDs (and other recorded music)

– DVDs (and other video content)

– console and PC games

– downloads

It looks as “downloads” includes ebooks, but the sector definition as a whole doesn’t include pbooks.

It’s unclear how broadly downloads are defined – all apps, or just those that have some kinship to traditional formats?  If so, that would be a “yes” to Angry Birds, but a “no” to business apps.

It’s also unclear whether all subsidiaries are properly accounted for – so, for instance, are LoveFilm downloads included in Amazon total?

Still, whatever the definition, it all makes for a good story.  The changes in percentage point share are pretty predictable – Amazon up, HMV down, Game Group – with multiple store closures following administration – well down.

But I am interested in the scale of some of the gains.  Of course, the overall size of the market fluctuates, but for iTunes to move from 6.0% to 8.8% represents an increase in penetration of nearly 50%.  And, LoveFilm or not, Amazon’s growth continues powerfully, with no reason to assume it will slow down in the foreseeable future.

Tesco’s tribulations and Sainsbury’s progress are both graphically illustrated here – indeed, if these numbers are a microcosm of current trading at Tesco, that would be a concern.

Meanwhile, Play.com sees its share slide, as it loses consumer visibility.  Amazon isn’t just taking sales from bricks and mortar retailers…

That the “Others” are growing their share suggests diversity in the market.  I wonder who they might be?

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