Physical sales of music dipped 5.8% in Q1, according to Kantar Worldpanel’s latest numbers on the entertainment market.
While music sales did not decline as much as video (21.0%), the games sector increased sales by 2.1% year-on-year. The data was taken from the 12 weeks preceding January 14.
Commenting on the findings, Olivia Moore, analyst at Kantar Worldpanel, said: “Although fewer shoppers chose to buy their loved ones games, videos and CDs for Christmas in 2017, the festive period is still a bountiful time of the year for retailers. Surprising friends and family with physical entertainment gifts is still a popular choice: almost 45% of spend in this market during the final quarter of the year came from customers picking up a game, video or CD to put under the tree.”
Moore also highlighted the resurgence of vinyl as a source of hope for the industry, while encouraging retailers to “become savvier with in-store layouts” to encourage more impulsive purchases.
Based on physical sales of music, video and games, Amazon increased its market share 3.3%, from 21.3% to 24.6%. Elsewhere, eBay rose from 1.4% to 2.2%. HMV dipped from 16.2% to 15.6%, while Tesco, Sainsbury’s, Asda, Morrisons, Argos and Zavvi also suffered declines.
With Ed Sheeran, Rag’N’Bone Man and Taylor Swift on the market alongside releases by Foo Fighters, Ball & Boe and Noel and Liam Gallagher, the music business’ Q4 schedule was very busy. Revisit Music Week’s editorial on the period here.
Read an interview with Entertainment Retailers Association CEO Kim Bayley on January’s markedly more positive ERA and BPI numbers here.
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