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. Physical vs online: physical pounds to digital pennies? The pivot to online that is under way across UK media and entertainment is by no means complete. Across most media sub-sectors, physical revenues continue to represent a significant proportion of overall income. In our top ten by revenue, only the information publishing representatives RELX and Pearson generate two-thirds or more of their revenue from digital sources (70 per cent and 65 per cent respectively). Across film, books and magazines, physical sales account for more than 80 per cent of industry revenues. In some sectors the decline of physical sales is showing some signs of reaching a plateau or even reversing. In the book market, for example, physical sales accounted for 86 per cent of revenue and the volume of 9 e-book sales actually fell in 2015 for the first time. Figure 8. Proportion of revenues by digital by sector 100% 90% 80% 66 70% 51 60% 50% 40% 26 16 30% 11 14 20% 10% 0% Film Music Gaming News publishing Books Magazines Sources: BFI (http://www.bfi.org.uk/education-research/film-industry-statistics-research/statistical-yearbook); Music & Gaming: Entertainment Retailers Association (http://www.eraltd.org/info-stats/overview.aspx); News Publishing: Deloitte analysis (Based on individual company figures) Books: Deloitte TMT Predictions (http://www2.deloitte.com/content/dam/Deloitte/global/Documents/Technology- Media-Telecommunications/gx-tmt-pred15-print-alive-and-well.pdf); Magazines: Deloitte analysis (Based on individual company figures) Media Metrics The state of UK media and entertainment 19
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