To start a new section, hold down the apple+shift keys and click to release this object and type the section title in the box below. Music and video gaming are further ahead on the digital journey: in 2015 a total of £544m was spent on music downloads and streaming subscriptions, representing just over half of all music retail sales (excluding revenues from live performances). In the gaming market, online sales (content delivered directly to consoles or mobile 10 devices) account for two-thirds of industry retail revenues. Of the ten largest companies in our ranking, the vast majority are mixed media. Many are in a period of transition but by no means assuming that their future is a 100 per cent online business model. WPP, for example, is targeting 40-45 per cent of revenues to come from ‘new media’ (including digital and other service revenue) 11 by 2020, up from 37 per cent in 2015. The recent revival in growth of physical books demonstrates that consumer attachment to some forms of tangible product remains and can be exploited by companies who are committed to physical formats. At the other end of the spectrum there are a handful of companies, such as Auto Trader, that have made the leap to a fully online business model, alongside the digital natives in our ranking such as Facebook and Google. The bottom line There are two clear challenges with moving from a legacy physical business model to an online-focused one. The first is finding a digital business model that is profitable, whether advertising-funded, transactional or subscription, or a mix of all three. The second is managing the transition from an operating model focused on physical or linear products to a digital one, and the inherent complexities of operating in two worlds. 20