A new report from Kantar Wordpanel has illustrated Amazon’s dominance of the entertainment market in the UK. According to the data compiled by Kantar, Amazon now has 22.5% of share of the entertainment market.
The figures cover a three month period up until September 28, 2014. During this time, sales at Amazon increased by 4.9%; Amazon has experienced growth in the music, video and games markets.
Fiona Keenan, strategic insight director at Kantar Worldpanel, said:
“Amazon has continued to push forward and is enjoying its highest ever share since taking 25% of the market in the last quarter of 2013. This success bodes well for its Christmas performance where it will be trying to capture spend from the 18.6 million consumers who will be shopping for entertainment products in the run up to the festive season.”
“Amazon’s success is representative of a general shift towards online shopping within the entertainment sector. Thanks to the rise of connected devices – 71% of individuals now own a smartphone and 57% own a tablet – this is a shift that we expect to continue.”
However, the report wasn’t good news for other retailers. Supermarket chains have all lost market share when compared with the 2013 figures. During the last quarter, Tesco lost 5.5% of market share; HMV remained steady at 12.3%, but the chain has yet to realise its ambition of taking over Amazon to become the leading film and music retail outlet in the UK.
Supermarket chains are facing strong competition in the video game market from the likes of Argos, who now have a market share of 8.6%, which means it has overtaken Asda. The launch of the Destiny video game failed to help the supermarket chains recover their market share, and instead 54% of consumers choose to purchase Destiny from Amazon and GAME.
DVD and Blu-ray
The report from Kantar Worldpanel did bring some positive news for the DVD and Blu-ray market; sales have increased by 3% despite there being a decrease in sales volume. DVD and Blu-ray sales have performed well due to the release of the LEGO movie and the Game of Thrones box set.