Although disc sales fell by 7.2% in the UK in 2011, the British Video Association today says a study it commissioned has found sales of DVDs, Blu-rays and digital formats are the “single biggest revenue source for the production of film and television drama in the UK.” The report, by Oxford Economics (which also did this week’s study touting BskyB’s £5.4B contribution to UK GDP), estimates that £2.3B was spent on video entertainment in 2011 in the UK, dwarfing the £1.1B spent on movie tickets. Case studies on six British – or British-themed – films found that in five instances video outperformed box office and TV sales. The biggest local draw of 2011, The Inbetweeners Movie, earned 54% of its takings via video and 46% from theatrical and TV. (Sherlock Holmes: A Game Of Shadows, however, scored 43% of its revenues from video compared to 57% for aggregated box office and TV.) Overall, the study found that video in 2011 was responsible for 47% of feature film revenues and one-third of TV series revenues including such shows as Doctor Who, Planet Earth and Downton Abbey. The digital rental and retail sector is growing with rental accounting for 8.2% of the market, an annual increase of 10%. Digital retail has only 4.2% of the market, but grew more than 28% in a year. For Q1 2012, it was worth 15% of the market. The BVA says it expects discs to remain consumers’ preferred option, “for the foreseeable future.”

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