Physical Distribution Of Music Fights Back

The number of physical stores selling music, video and games has reached an all-time high of more than 14,800, according to latest figures published (7 March 2016) in the annual Entertainment Retailers Association (ERA) Yearbook. In music and video the official stores total has more than doubled since 2009. The increase comes despite surging growth in internet sales (Amazon, iTunes) and consumption (games apps, Spotify, Netflix) of entertainment. The internet accounted for 71.8% of entertainment’s revenues in 2015 compared with 28.2% for bricks and mortar stores.

Nevertheless, the number of entertainment outlets has continued to rise with DVD and Blu-ray available in 14,852 stores in 2015 and CD and/or vinyl available in 14,727, according to ERA.

ERA CEO Kim Bayley said, “These are astonishing numbers. Conventional wisdom has always suggested that the internet spelled the end for physical entertainment stores, but these numbers show that traditional retail still has a place, particularly for impulse purchases and gifts. After all, you can’t gift-wrap a download or a stream.”

A key factor in the growth of the UK store estate has been a big increase in the number of general and non-traditional store retailers adding small ranges of chart or specialist entertainment product chosen for their relevance to their particular customers.

Stores now reporting to the Official UK Charts for the first time include Argos, Boots, Burton, Moto, Primark and Urban Outfitters (known for their large vinyl selection).

“The addition of these outlets to the chart panel means it is difficult to make a direct year-on-year comparison,” said Bayley, “but the trend is clear – just as the internet has demonstrated that accessibility and convenience are key to selling entertainment, physical stores are demonstrating that if you put entertainment in front of people, they will buy it.”

Source: Entertainment Retailers Association
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