Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Music and Video Purchasing - UK - August 2011

The category of the market covered in this report is: pre-recorded music and video content, both in physical format (including CDs, standard DVDs, music DVDs, Blu-ray discs and UMDs) and as digital content.

  • Streaming services such as Spotify or Napster – which function on a subscription model for unlimited music – have been excluded from market size considerations, but are addressed in consumer trends.
  • Digital content can be obtained through download sites (such as iTunes) in the form of digitally compressed files that can be played on a computer or transferred to other devices – depending on restrictions placed on the file by the original content providers.
  • Mintel acknowledges the illegal download problem facing the film and music industry in this report. However, market sizes and estimations apply to the legal download markets only.

Care should be taken to differentiate between ‘online’ and ‘digital’ within this report. Purchasing music or video online refers to ordering a physical copy of the media through a web outlet – purchasing music or video digitally refers to the purchase of digital music or video files.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Introduction

      • Definition
        • Abbreviations
        • Executive Summary

            • The market
              • Figure 1: Value of music sales, 2006-10
              • Figure 2: Value of DVD/Blu-ray sales, 2008-10
            • Music
              • Video
                • Market factors
                  • On-demand access and ‘gadgetisation’ will lead to greater digital penetration
                    • Shifting age demographics require new marketing strategies to maintain interest
                      • Digital providers agree – the experience is the key to beating piracy
                        • Companies, brands and innovation
                          • Music
                            • Figure 3: Percentage of consumer expenditure on music, by type of retailer, 2010
                          • Video
                            • Figure 4: Consumer expenditure, by retail channel, 2010
                            • Figure 5: Volume of consumer expenditure, by channel, 2010
                          • Supermarkets put on a strong showing
                            • Specialist retailer market share dwindles
                              • The consumer
                                • Figure 6: Physical media purchasing habits within the last 12 months, May 2011
                              • Almost half of respondents purchase CDs or DVDs
                                • Figure 7: Consumption of digital music and video, by age, May 2011
                              • Digital usage declines with age
                                • Much anti-digital sentiment remains
                                  • Figure 8: Agreement with attitudes towards music and video purchasing, May 2011
                                • What we think
                                • Issues in the Market

                                    • Can specialist stores maintain footfall?
                                      • Will streaming music services affect the purchasing of digital music files?
                                        • How can digital video producers speed up format adoption amongst the public?
                                          • Will supermarkets supplant specialists in bricks-and-mortar retail?
                                          • Future Opportunities

                                            • Inspire Insights
                                              • Trend: Re-teching the Past
                                                • Trend: Influentials
                                                • Internal Market Environment

                                                  • Key points
                                                    • Video
                                                      • Plateau of HDTV
                                                        • Figure 9: HDTV ownership, April 2009-December 2010
                                                        • Figure 10: Ownership of Blu-ray DVD players and upscaling DVD players, July 2009-December 2010
                                                        • Figure 11: UK retail value sales of DVD players/systems, by type, 2006-09
                                                      • Online media hits DVD sales
                                                        • Studios look to 3D to help Blu-ray encourage HD take-up
                                                          • Format wars prove a hindrance
                                                            • Music
                                                              • Streaming media from the Cloud
                                                                • Figure 12: UK broadband penetration, 2004-10
                                                                • Figure 13: Music industry income, 2008-10
                                                              • Bigger digital steps
                                                                • Natural move for the gadget-hungry?
                                                                  • Figure 14: How internet users listen to music downloads, October 2008
                                                                • Trouble on the High Seas
                                                                  • Figure 15: Average price of CDs, by type, 2007-10
                                                                • Heavy-handed tactics lack traction
                                                                  • Traders optimistic?
                                                                    • Changing structure of the industry – live shows and box sets
                                                                      • Figure 16: Live music events paid to watch, 2010
                                                                    • 4G network auction
                                                                    • Broader Market Environment

                                                                      • Key points
                                                                        • Projected growth fuelled by legal digital activity
                                                                          • Figure 17: GDP, PDI, consumer expenditure and savings, at current prices, 2006-16
                                                                        • Next-gen purchasers
                                                                          • Figure 18: Trends in the age structure of the UK population, by age, 2006-16
                                                                        • Consumer confidence is down, but key age groups continue spending
                                                                          • Figure 19: GfK NOP Consumer Confidence Index, January 1988-June 2011
                                                                          • Figure 20: Impact of the economic downturn on consumers, by age, May 2011
                                                                        • Broadband growth reaching saturation point amongst ABs
                                                                          • Figure 21: Broadband penetration, by socio-economic group, 2004-10
                                                                        • Interest in cinema dips
                                                                          • Figure 22: Respondents who would rather see a film in the cinema than at home, 2006-10
                                                                      • Who’s Innovating?

                                                                        • Key points
                                                                          • Playbutton
                                                                            • Spotify iPod integration
                                                                              • Play and Amazon launch branded credit cards
                                                                                • Facebook/Spotify integration
                                                                                  • HMV goes Social
                                                                                  • Market Size, Segmentation and Forecast

                                                                                    • Key points
                                                                                      • Music
                                                                                        • Digital sales dominate singles sales in particular
                                                                                          • Figure 23: Value of music sales, 2006-10
                                                                                          • Figure 24: UK singles – physical/digital volume sales split, 2010
                                                                                          • Figure 25: UK albums – physical/digital volume sales split, 2010
                                                                                          • Figure 26: Downloads as a percentage of all music purchases, 2007-16
                                                                                        • Contraction of music markets evens out
                                                                                          • Figure 27: Music market value and forecast, 2006-16
                                                                                        • Digital sales continue to gain prominence
                                                                                          • Figure 28: Market value and forecast of physical music sales, 2006-16
                                                                                          • Figure 29: Market value and forecast of downloaded music sales, 2006-16
                                                                                        • Video
                                                                                          • Digital video grows amongst general contraction
                                                                                            • Figure 30: Value of DVD/Blu-ray sales, 2008-10
                                                                                        • Channels to Market

                                                                                          • Key points
                                                                                            • Music
                                                                                              • Supermarkets keep a strong voice, but digital is getting louder
                                                                                                • Figure 31: Percentage of consumer expenditure on music, by type of retailer, 2009 and 2010
                                                                                              • Last standing specialist tailspins
                                                                                                • Video
                                                                                                  • Figure 32: Consumer expenditure, by retail channel, 2010
                                                                                                • Market more stable, supermarkets still excel
                                                                                                  • Internet dominates rental market
                                                                                                    • Figure 33: Frequency of renting DVDs, by rental stream chosen, 2010
                                                                                                • Companies and Products

                                                                                                    • HMV
                                                                                                        • Figure 34: Financial performance of the HMV Group, 2009 and 2010
                                                                                                      • 7digital
                                                                                                        • Amazon
                                                                                                            • Figure 35: Financial performance of Amazon PLC, 2009 and 2010
                                                                                                          • iTunes
                                                                                                              • Figure 36: Financial performance of Apple Inc, 2009 and 2010
                                                                                                            • Napster
                                                                                                              • Play.com
                                                                                                                • Spotify
                                                                                                                  • The Hut Group/zavvi.com
                                                                                                                    • Blinkbox
                                                                                                                    • Brand Communication and Promotion

                                                                                                                      • Key points
                                                                                                                        • Music CD adspend in slow decline, MP3 showing slight rise
                                                                                                                          • Figure 37: CD and MP3 adspend, 2007-11
                                                                                                                          • Figure 38: Music CD spending, by label, 2007-10
                                                                                                                        • Bundles receive greatest advertising push
                                                                                                                          • Internet up, outdoor down, TV in the middle
                                                                                                                            • Figure 39: DVD adspend, by delivery channel, 2007-10
                                                                                                                            • Figure 40: DVD/Blu-ray/combination product advertising ‘Outdoor’ spend, by film classification, 2009 and 2010
                                                                                                                            • Figure 41: DVD/Blu-ray/combination product advertising ‘Internet’ spend, by film classification, 2009 and 2010
                                                                                                                            • Figure 42: DVD/Blu-ray/combination product advertising ‘Television’ spend, by film classification, 2009 and 2010
                                                                                                                          • Retailers occasionally step up
                                                                                                                            • Figure 43: DVD adspend, by advertiser, 2007-10
                                                                                                                        • CD and DVD Purchasing

                                                                                                                          • Key points
                                                                                                                            • Purchasing moving online
                                                                                                                              • Figure 44: CD/DVD purchasing methods, May 2011
                                                                                                                              • Figure 45: Purchasing frequency for CDs/DVDs from the internet and the high street, May 2011
                                                                                                                            • Over half still interested in hard copy
                                                                                                                              • Figure 46: CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                            • Demographics influence online exclusivity
                                                                                                                              • Figure 47: CD/DVD purchasing methods done in the last 12 months, by socio-economic group and household income, May 2011
                                                                                                                            • Appeal of online shopping is pan-industry
                                                                                                                              • Figure 48: CD/DVD purchasing methods done in the last 12 months, by CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                            • Students lead the pack in high street rentals
                                                                                                                              • Figure 49: Buying and renting DVDs, by employment status, May 2011
                                                                                                                          • Digital Music and Video Consumption

                                                                                                                            • Key points
                                                                                                                              • Over half the population consume digital media
                                                                                                                                • Figure 50: Digital music/video purchasing methods, May 2011
                                                                                                                                • Figure 51: Respondents who purchase or stream digital media – music and video, May 2011
                                                                                                                              • Beg, borrow or steal?
                                                                                                                                • Figure 52: Digital music video purchasing, by CD/DVD purchasing methods in the last 12 months, May 2011
                                                                                                                              • It’s a young man’s game
                                                                                                                                • Figure 53: Consumption of any digital media, by age, May 2011
                                                                                                                                • Figure 54: Paying to stream film/TV, by age, May 2011
                                                                                                                                • Figure 55: Digital music consumption, by employment status, May 2011
                                                                                                                            • Digital Music and Video Device Usage

                                                                                                                              • Key points
                                                                                                                                • Music: Mobile phones capitalise on popularity; tablets on the rise
                                                                                                                                  • Figure 56: Devices used to download/stream music, May 2011
                                                                                                                                • Streaming services: Portable and pricey
                                                                                                                                  • Figure 57: Most popular music/video purchasing methods, by mobile and tablet usage for downloading/streaming, May 2011
                                                                                                                                • Streaming video: Clicks and consoles
                                                                                                                                  • Figure 58: Devices used to download/stream film/TV content, May 2011
                                                                                                                                • DVD renters eschew desktops
                                                                                                                                  • Figure 59: Usage of desktop PCs to stream video, by CD and DVD purchasing done in the last 12 months, May 2011
                                                                                                                                  • Figure 60: Usage of desktops to stream or download video, by general shopping habits for CD/DVD, May 2011
                                                                                                                                • Device ownership will push VoD consumption
                                                                                                                                • Attitudes towards Music and Video Purchasing

                                                                                                                                  • Key points
                                                                                                                                    • Anti-digital attitudes take the lead
                                                                                                                                      • Figure 61: Attitudes towards music and video purchasing, May 2011
                                                                                                                                    • Consumers enjoy ‘ease of downloading’ and home delivery
                                                                                                                                      • Figure 62: CD/DVD purchase methods, by those who like the ease of downloading music/video compared with buying physical CDs/DVDs, May 2011
                                                                                                                                    • Not worth the money? Digital buyouts win again
                                                                                                                                      • Figure 63: Purchasing of physical media, by selected attitudes towards music and video purchasing, May 2011
                                                                                                                                      • Figure 64: Purchasing of digital media, by selected attitudes towards music and video purchasing, May 2011
                                                                                                                                    • Social media use low but effective
                                                                                                                                      • Figure 65: CD and DVD purchasing, by those who get recommendations from social media, May 2011
                                                                                                                                    • Who is keeping the high street alive?
                                                                                                                                      • Figure 66: High street CD and DVD purchasing, by most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                      • Figure 67: Exclusively high street CD/DVD purchasing, by most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                  • Target Groups

                                                                                                                                    • Key points
                                                                                                                                      • Figure 68: Music and video target groups, May 2011
                                                                                                                                    • The Old Schoolers
                                                                                                                                      • The Futureheads
                                                                                                                                        • The Disengaged
                                                                                                                                        • Appendix – Internal Market Environment

                                                                                                                                            • Figure 69: Trends in frequency of going to theatre, concerts, music gigs and cinema, 2006-10
                                                                                                                                            • Figure 70: Electronic devices have at home, April 2009-December 2010
                                                                                                                                        • Appendix – Broader Market Environment

                                                                                                                                            • Figure 71: Impact of the economic downturn on consumers, by age, May 2011
                                                                                                                                        • Appendix – Market Size and Forecast

                                                                                                                                            • Figure 72: Physical and pre-recorded music market*, at current and constant prices, 2006-16
                                                                                                                                            • Figure 73: Forecast of downloads as a share of pre-recorded music market, 2006-16
                                                                                                                                            • Figure 74: Best- and worst-case scenarios for music forecasts, 2011-16
                                                                                                                                            • Figure 75: Best- and worst-case scenarios for physical music, 2011-16
                                                                                                                                            • Figure 76: Best- and worst-case scenarios for downloaded music forecasts, 2011-16
                                                                                                                                        • Appendix – CD and DVD Purchasing

                                                                                                                                            • Figure 77: Most popular CD/DVD purchasing methods done in the last 12 months, by demographics, May 2011
                                                                                                                                            • Figure 78: Next most popular CD/DVD purchasing methods done in the last 12 months, by demographics, May 2011
                                                                                                                                            • Figure 79: CD/DVD purchasing methods done in the last 12 months, by demographics, May 2011
                                                                                                                                            • Figure 80: Most popular CD/DVD purchasing methods done longer than 12 months ago, by demographics, May 2011
                                                                                                                                            • Figure 81: Next most popular CD/DVD purchasing methods done longer than 12 months ago, by demographics, May 2011
                                                                                                                                            • Figure 82: CD/DVD purchasing methods done in the last 12 months, by most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 83: CD/DVD purchasing methods done in the last 12 months, by next most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 84: CD/DVD purchasing methods done in the last 12 months, by most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 85: CD/DVD purchasing methods done in the last 12 months, by next most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                        • Appendix – Digital Music and Video Purchasing

                                                                                                                                            • Figure 86: Digital music purchasing methods done in the last 12 months, by demographics, May 2011
                                                                                                                                            • Figure 87: Digital TV/movies purchasing methods done in the last 12 months, by demographics, May 2011
                                                                                                                                            • Figure 88: Digital music purchasing methods done longer than 12 months ago, by demographics, May 2011
                                                                                                                                            • Figure 89: Digital TV/movies purchasing methods done longer than 12 months ago, by demographics, May 2011
                                                                                                                                            • Figure 90: Digital music/video purchasing methods done in the last 12 months, by most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 91: Digital music/video purchasing methods done in the last 12 months, by next most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 92: Digital music/video purchasing methods done in the last 12 months, by most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 93: Digital music/video purchasing methods done in the last 12 months, by next most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 94: Digital music/video purchasing methods done in the last 12 months, by most popular CD/DVD purchasing methods done longer than 12 months ago, May 2011
                                                                                                                                            • Figure 95: Digital music/video purchasing methods done in the last 12 months, by next most popular CD/DVD purchasing methods done longer than 12 months ago, May 2011
                                                                                                                                        • Appendix – Digital Music and Video Device Usage

                                                                                                                                            • Figure 96: Devices used to download/stream music, by demographics, May 2011
                                                                                                                                            • Figure 97: Devices used to download/stream film/TV content, by demographics, May 2011
                                                                                                                                            • Figure 98: Devices used to download/stream music, by most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 99: Devices used to download/stream music, by next most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 100: Devices used to download/stream music, by most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 101: Devices used to download/stream music, by next most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 102: Devices used to download/stream music, by most popular digital music/video purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 103: Devices used to download/stream music, by next most popular digital music/video purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 104: Devices used to download/stream music, by devices used to download/stream music, May 2011
                                                                                                                                            • Figure 105: Devices used to download/stream film/TV content, by most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 106: Devices used to download/stream film/TV content, by next most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 107: Devices used to download/stream film/TV content, by most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 108: Devices used to download/stream film/TV content, by next most popular CD/DVD purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 109: Devices used to download/stream film/TV content, by most popular digital music/video purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 110: Devices used to download/stream film/TV content, by next most popular digital music/video purchasing methods done in the last 12 months, May 2011
                                                                                                                                            • Figure 111: Devices used to download/stream film/TV content, by devices used to download/stream music, May 2011
                                                                                                                                            • Figure 112: Devices used to download/stream film/TV content, by devices used to download/stream film/TV content, May 2011
                                                                                                                                        • Appendix – Attitudes towards Music and Video Purchasing

                                                                                                                                            • Figure 113: Agreement with the most popular attitudes towards music and video purchasing, by demographics, May 2011
                                                                                                                                            • Figure 114: Agreement with the next most popular attitudes towards music and video purchasing, by demographics, May 2011
                                                                                                                                            • Figure 115: Agreement with the final set of attitudes towards music and video purchasing, by demographics, May 2011
                                                                                                                                            • Figure 116: CD/DVD purchasing methods done in the last 12 months, by agreement with the most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 117: CD/DVD purchasing methods done in the last 12 months, by agreement with the next most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 118: CD/DVD purchasing methods done in the last 12 months, by agreement with the remaining attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 119: CD/DVD purchasing methods done in the last 12 months, by agreement with the most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 120: CD/DVD purchasing methods done in the last 12 months, by agreement with the next most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 121: CD/DVD purchasing methods done in the last 12 months, by agreement with the remaining attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 122: Digital music/video purchasing methods done in the last 12 months, by agreement with the most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 123: Digital music/video purchasing methods done in the last 12 months, by agreement with the next most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 124: Digital music/video purchasing methods done in the last 12 months, by agreement with the remaining attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 125: Devices used to download/stream music, by agreement with the most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 126: Devices used to download/stream music, by agreement with the next most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 127: Devices used to download/stream music, by agreement with the remaining attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 128: Devices used to download/stream film/TV content, by agreement with the most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 129: Devices used to download/stream film/TV content, by agreement with the next most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 130: Devices used to download/stream film/TV content, by agreement with the remaining attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 131: Agreement with the most popular attitudes towards music and video purchasing, by agreement with the most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 132: Agreement with the most popular attitudes towards music and video purchasing, by agreement with the next most popular attitudes towards music and video purchasing, May 2011
                                                                                                                                            • Figure 133: Agreement with the most popular attitudes towards music and video purchasing, by agreement with the remaining attitudes towards music and video purchasing, May 2011
                                                                                                                                        • Appendix –Target Groups

                                                                                                                                            • Figure 134: Target groups, by demographics, May 2011
                                                                                                                                            • Figure 135: CD/DVD purchasing methods done in the last 12 months, by target groups, May 2011
                                                                                                                                            • Figure 136: CD/DVD purchasing methods done in the last 12 months, by target groups, May 2011
                                                                                                                                            • Figure 137: Digital music/video purchasing methods done in the last 12 months, by target groups, May 2011
                                                                                                                                            • Figure 138: Devices used to download/stream music, by target groups, May 2011
                                                                                                                                            • Figure 139: Devices used to download/stream film/TV content, by target groups, May 2011
                                                                                                                                            • Figure 140: Agreement with the most popular attitudes towards music and video purchasing, by target groups, May 2011

                                                                                                                                        Companies Covered

                                                                                                                                        • 7digital
                                                                                                                                        • Advertising Standards Authority
                                                                                                                                        • Amazon.co.uk
                                                                                                                                        • Apple Computer UK Ltd
                                                                                                                                        • Blockbuster Entertainment Ltd (UK)
                                                                                                                                        • British Phonographic Industry Ltd (The) [BPI]
                                                                                                                                        • British Video Association (BVA)
                                                                                                                                        • Buena Vista Home Entertainment Inc.
                                                                                                                                        • EMI Group plc
                                                                                                                                        • FremantleMedia
                                                                                                                                        • Google UK
                                                                                                                                        • HMV Retail Ltd
                                                                                                                                        • LOVEFiLM International Ltd
                                                                                                                                        • Napster Inc.
                                                                                                                                        • Netflix, Inc.
                                                                                                                                        • Nordic Venture Partners
                                                                                                                                        • Phones 4U Ltd
                                                                                                                                        • Research in Motion Uk Ltd.
                                                                                                                                        • Samsung Electronics (UK) Ltd
                                                                                                                                        • Sony (UK) Ltd
                                                                                                                                        • Spotify AB
                                                                                                                                        • The Performing Right Society [PRS]
                                                                                                                                        • Universal Music Group
                                                                                                                                        • Vodafone Group Plc (UK)
                                                                                                                                        • Warner Music Group
                                                                                                                                        • Wm Morrison Supermarkets
                                                                                                                                        • Zavvi

                                                                                                                                        Music and Video Purchasing - UK - August 2011

                                                                                                                                        £1,995.00 (Excl.Tax)