Supermarkets increase their share of the entertainment market
Tesco, SainsburyÂ’s and Asda all increased their share of the video, music and games sector in the first quarter of 2013 as the grocery market accounted for 32.2% of all entertainment sales, according to the latest data from Kantar Worldpanel.
The research company said sales were boosted by Skyfall, the biggest title of the year, as the supermarkets’ aggressive pricing and large advertising campaigns resulted in them taking over 80% of its sales to date.
Elsewhere, HMV was shown to have performed relatively well over the past 12 weeks and now accounts for 17.6% of the market, only dropping one percentage point when compared with its share in the final quarter of 2012.
Fiona Keenan, consumer insight director at Kantar Worldpanel, said: "There is still work to be done for HMV, particularly when we look at its decline over the past year and the growing dominance of its rivals. The growth of digital music has played an important part in its performance. Sales of digital music grew by 12% in quarter one compared with the same period last year and now account for 47% of all music purchases."
Amazon, the largest music retailer, increased its overall share of the entertainment market by 2.9 percentage points in the period to 21.8% as sales of digital music helped the online retailer to have a strong quarter.
Keenan added: "One potential stumbling block for the ever dominant Amazon is the games market, where Game continues to dominate and is the biggest retailer. Although its market share has dropped at a total entertainment level, this is mainly as a result of video games making up a smaller share of the wider entertainment market.
"When we look just within the games market the retailer is performing strongly and is well placed to pick up any HMV games customers that may be looking elsewhere."
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