Contents
Executive Summary – UK
DVD boom drives strong growth in books, music and video market
Buoyant book market as non-specialists continue to take market share
Beleaguered UK music market continues to struggle but outperforms global downturn
Music downloads expanding rapidly in line with installed base of technology
HMV Group leads the market
Report Scope
Definitions
Booksellers
Music retailers
Video retailers
Home shopping retailers
Technical notes
Financial definitions
Currencies
Figure 1: Exchange Rates: National currencies against the Euro, 2002-04
Country codes
VAT
Figure 2: Europe: Standard VAT rates, 2004
Other abbreviations
Background Data – United Kingdom
Population
Figure 3: UK: Population trends, 1999-2003
Figure 4: UK: Population, by age group and sex, 2003
Figure 5: UK: Households, 2003
Figure 6: UK: Regions and major cities, 2002
Economy
Figure 7: UK: Gross domestic product, 1995-2003
Figure 8: UK: Consumer prices, 1997-2003
Figure 9: UK: Consumer expenditure, 1995-2003
Figure 10: UK: Detailed breakdown of consumer expenditure, 1999-2003
The UK Book, Music and Video Market
Market value and trends
Figure 11: UK: Books, music & video market, 1999-2003
Other market data
Figure 12: UK: Consumer spending on books, music & video, 1999-2003
Figure 13: UK: Spending on books, music and video as % of total spending, 1999-2003
2004 data
Figure 14: UK: Consumer spending on books, music and video, first three quarters, 2003-04
UK Book, Music & Video retail sales
Figure 15: UK: Retail sales by commodity, 1997-2002
Figure 16: UK: Retail sales of books, newspapers and stationery, 1999-2004 (e)
The UK book market
Figure 17: UK: Consumer spending on books, 1999-2003
Channels of distribution
Figure 18: UK Book market, estimated channels of distribution, 2003
Outlets
Figure 19: UK: Book, newspaper & stationery retailers’ outlets, 1999-2003
The UK music market
Market size
Figure 20: UK: Sales of pre-recorded music by format, 1999-2003
Channels of distribution
Figure 21: UK music market: Estimated channels of distribution, 2003
Outlets
Figure 22: UK: Number of music outlets by type, 1999-2003
The UK video and DVD market
Market size
Figure 23: UK: Video market by main category, 1999-2003
Figure 24: UK: Video & DVD market, by format, 1999-2003
Channels of distribution
Figure 25: UK video market: Estimated channels of distribution, 2003
Consumer Trends
Introduction
Book buying and visiting bookshops
Figure 26: Number of books bought in the last 12 months in Great Britain, by gender, age, family income and region, 2004
Figure 27: Visiting bookshops, reading and buying books in Great Britain, by gender, age, family income and region, 2004
Music buying
Figure 28: Purchasing of CDs, DVDs and mini discs in the last 12 months in Great Britain, by gender, age, family income and region, 2004
Video & DVD buying
Figure 29: Purchasing of any videotapes or DVDs in the last 12 months in GB, by gender, age, family income and region, 2004
The Consumer
Key consumer findings
Books, music & video
Books
Music
Video (DVD)
Books – Channels
Specialists continue to dominate…
Figure 30: Outlets used for buying books in the last 12 months, the retired lifestage & ABC1 retired special group, by major channel, March 2005
The rise of the supermarkets
Figure 31: Outlets used for buying books in the last 12 months, by outlet type, March 2005
The Amazon Effect
Book clubs successful at reaching older consumers
Missed sales and new opportunities
Figure 32: Outlets used for buying books in the last 12 months, by gender, age and socio-economic group, March 2005
Books – retailers
WH Smith continues to draw in book buyers
Figure 33: Outlets used for buying books in the last 12 months, by outlet, March 2005
Waterstone’s dominates the specialist sector
Figure 34: Outlets used for buying books in the last 12 months, by gender, age and socio-economic group, March 2005
Ottakar’s strategy proving successful
Borders’ urban stores finding favour with affluent consumers
Woolworths attracting younger book buyers
Figure 35: Outlets used for buying books in the last 12 months, by gender, age and socio-economic group, March 2005
Supermarkets converting food shoppers into book buyers
Figure 36: Outlets used for buying books in the last 12 months, by gender, age and socio-economic group, March 2005
Music
Specialists still the leading channel for music
Supermarkets limited offer delivering dividends
Figure 37: Outlets used for buying CDs or other pre-recorded music in the last 12 months, by major channel of distribution, March 2005
Internet players have lower penetration in music than in books
Missed sales & opportunities
Figure 38: Outlets used for buying CDs or other pre-recorded music in the last 12 months, by gender, age and socio-economic group, March 2005
Retailers
HMV is music market number one
Figure 39: Outlets used for buying CDs or other pre-recorded music in the last 12 months, March 2005
WH Smith – broad appeal or lack of focus?
Figure 40: Outlets used for buying CDs or other pre-recorded music in the last 12 months, by gender, age and socio-economic group, March 2005
Woolworth’s finds favour with women
Almost half of ASDA food shoppers buy music in-store
Figure 41: Outlets used for buying CDs or other pre-recorded music in the last 12 months, by gender, age and socio-economic group, March 2005
Internet players appeal to a surprisingly broad range of music consumers
DVDs/videos
Supermarkets the main channel for DVD buying
Specialists slip to second place
Figure 42: Outlets used for buying DVDs/videos in the last 12 months, by major channel of distribution, March 2005
Internet players weaker in DVD market than in books or music
Figure 43: Percentage of consumers shopping on the Internet for books, music & DVD/video, March 2005
Missed sales & opportunities
Figure 44: Outlets used for buying DVDs/videos in the last 12 months, by gender, age and socio-economic group, March 2005
Retailers
HMV leads Virgin in the specialist stakes
Figure 45: Outlets used for buying DVDs/videos in the last 12 months, by gender, age and socio-economic group, March 2005
High street generalists under-perform the market?
Figure 46: Percentage of consumers shopping at WH Smiths and Woolworths for books, music and video, March 2005
Figure 47: Outlets used for buying DVDs/videos in the last 12 months, by gender, age and socio-economic group, March 2005
ASDA & Tesco dominate supermarket DVD retailing
Internet players attracting younger consumers
Figure 48: Outlets used for buying DVDs/videos in the last 12 months, by gender, age and socio-economic group, March 2005
The Consumer – Detailed Consumer Demographics
Figure 49: Outlets used for buying books in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 50: Outlets used for buying books in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 51: Outlets used for buying books in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 52: Outlets used for buying books in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 53: Outlets used for buying books in the last 12 months, by region and ACORN category, March 2005
Figure 54: Outlets used for buying books in the last 12 months, by region and ACORN category, March 2005
Figure 55: Outlets used for buying books in the last 12 months, by region and ACORN category, March 2005
Figure 56: Outlets used for buying books in the last 12 months, by region and ACORN category, March 2005
Figure 57: Outlets used for buying books in the last 12 months, by media, commercial TV viewing and source of regular grocery shopping, March 2005
Figure 58: Outlets used for buying books in the last 12 months, by media, commercial TV viewing and source of regular grocery shopping, March 2005
Figure 60: Outlets used for buying CDs and pre-recorded music in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 61: Outlets used for buying CDs and pre-recorded music in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 62: Outlets used for buying CDs and pre-recorded music in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 63: Outlets used for buying CDs and pre-recorded music in the last 12 months, by region and ACORN categories, March 2005
Figure 64: Outlets used for buying CDs and pre-recorded music in the last 12 months, by region and ACORN categories, March 2005
Figure 65: Outlets used for buying CDs and pre-recorded music in the last 12 months, by region and ACORN categories, March 2005
Figure 66: Outlets used for buying CDs and pre-recorded music in the last 12 months, by media, commercial TV viewing and source of regular grocery shopping, March 2005
Figure 67: Outlets used for buying CDs and pre-recorded music in the last 12 months, by media, commercial TV viewing and source of regular grocery shopping, March 2005
Figure 68: Outlets used for buying CDs and pre-recorded music in the last 12 months, by media, commercial TV viewing and source of regular grocery shopping, March 2005
Figure 69: Outlets used for buying DVDs/videos in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 70: Outlets used for buying DVDs/videos in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 71: Outlets used for buying DVDs/videos in the last 12 months, by lifestage and Mintel’s Special Groups, March 2005
Figure 72: Outlets used for buying DVDs/videos in the last 12 months, by region and ACORN categories, March 2005
Figure 73: Outlets used for buying DVDs/videos in the last 12 months, by region and ACORN categories, March 2005
Figure 74: Outlets used for buying DVDs/videos in the last 12 months, by region and ACORN categories, March 2005
Figure 75: Outlets used for buying DVDs/videos in the last 12 months, by media, commercial TV viewing and source of regular grocery shopping, March 2005
Figure 76: Outlets used for buying DVDs/videos in the last 12 months, by media, commercial TV viewing and source of regular grocery shopping, March 2005
Figure 77: Outlets used for buying DVDs/videos in the last 12 months, by media, commercial TV viewing and source of regular grocery shopping, March 2005
UK – Advertising Expenditure
Total spending
Figure 124: UK: Books, music & video retailers’ advertising expenditure, 2000-04
Figure 125: UK: Books, music & video retailers’ advertising expenditure by media, 2004
Leading Retailers
Figure 126: UK: Leading books, music & video retailers, 2003
Market share
Figure 127: UK: Leading books music & video estimated market shares, 2003
Music downloads
Figure 128: UK: Leading music download websites, March 2005
Prospects and Forecasts
Figure 129: UK: Books, newspapers & stationery retail sales forecasts, 2004-09
Major Company Profiles
amazon.com
Background
History
International expansion
Customer focus
Financial data
Figure 130: Amazon.com: Financial performance, 2000-04
International division outperforms North America
Figure 131: Amazon.com: Sales and gross profit by segment, 2001-04
Figure 132: Amazon: Sales by division, 2001-04
Products
Operations and systems
Loyalty card
SWOT
Blockbuster
Background
Figure 133: Blockbuster: International expansion
Financial data
Figure 134: Blockbuster: Financial performance, 2000-04
Figure 135: Blockbuster: Revenue breakdown, 2000-04
Figure 136: Blockbuster: Estimated European sales by country, 2000-03
Outlets
Figure 137: Blockbuster: Group outlet data, 1999-2003
Figure 138: Blockbuster: European outlet data, 2000-03
E-commerce
Products
Figure 139: Blockbuster: Estimated European product breakdown, 2003
Non-European activities
Figure 140: Blockbuster: Non-European outlet data, 2003
SWOT
HMV Group
Market share
Background
Financial data
Figure 141: HMV Group: Financial performance, 1999/2000-2004/05
Outlets
Figure 142: HMV Group: Outlet data, 2000-04
Figure 143: HMV Group: International stores by country, year to April 2004
E-commerce
Music downloads
Products
Figure 144: HMV Group: HMV UK & Ireland (a) product breakdown, 2000/01-2003/04
Figure 145: HMV Group: HMV UK & Ireland estimated sales by product breakdown, 2000/01-2003/04
Figure 146: HMV Group: Asia Pacific & North America product breakdown, 2002/03 & 2003/04
SWOT
Virgin Entertainment Group
Background
UK and Republic of Ireland
The demise of Our Price
Some converted…
…some sold
Continental Europe
France
Financial data
Figure 147: Virgin: UK & Ireland financial performance, 1998/99-2002/03
Figure 148: Virgin Entertainment Europe: Financial performance, 1998/99-2002/03
Outlets
Figure 149: Virgin Entertainment Group: Outlet data, 2000/01-2004/05
Xpress comes…
…and goes
E-commerce
Figure 150: Virgin Megastore online (UK): Financial data, 2001-03
Products
Boosting depth of range
Loyalty card
Virgin Mobile concessions
SWOT
WH Smith
Background
Non-core retail activities
Refocusing
Latest developments
Financial data
Figure 151: WH Smith: Financial performance, 1999/2000-2003/04
Full-year performance
The worm turns
Focus on margins
Recent trading
Interim results
Outlets
Figure 152: WH Smith: Outlet data, 1999/2000-2003/04
Store portfolio strategy
E-commerce
Products
Books
Entertainment
Other
Loyalty card
SWOT
Mini Company Profiles
Borders
Background
Financial data
Figure 153: Borders: Financial performance, 1998/99-2003/04
Outlets
Figure 154: Borders: Outlet data, 1998/99-2003/04
Products
Britannia (Universal Group Direct)
Background
Financial data
Figure 155: Universal Group Direct: Financial performance, 1996-2003
MVC
Background
Financial data
Figure 156: MVC: Financial performance, 1999-2004
Outlets
Figure 157: MVC: Outlet data, 1999-2005
Ottakar’s
Background
Financial data
Figure 158: Ottakar’s: Financial data, 1999-2005
Outlets
Figure 159: Ottakar’s: Outlet data, 1999-2005
