DVD sales of The King's Speech and the penultimate Harry Potter film failed to stem a 5.7% fall in revenue to just more than £1bn for the UK video entertainment sector in the first half of the year.
Spending on digital viewing via download and streaming services to mobile devices such as tablets rose 18% year on year, according to figures from the British Video Association (BVA).
The BVA said that there are now 44 legal services in the UK on which consumers can download or stream video content.
But they are yet to offset the slump in DVD and Blu-ray sales, which fell 8.1% in the first half of the year. Physical discs accounted for 96.5% of all sales in 2010.
The biggest-selling titles on DVD and Blu-Ray in the first half of 2011 were Harry Potter – The Deathly Hallows Part 1, which has sold more than 2m discs, and The King's Speech, which has sold more than 1.2m.
"The first half has been a bit of rollercoaster, with wallets and purses squeezed, but despite that people still found more than £1bn to spend on video entertainment, the vast majority on physical formats," said the BVA director general, Lavinia Carey.
"Digital is growing and has huge potential with the growth of internet-connected devices such as smartphones and tablets now an accepted norm for video viewing."
The report described the fall in total sales to £1.012bn as a "steady" performance in light of the tough economic environment.
The BVA also said that the second half of the year is traditionally stronger than the first – the runup to Christmas tends to account for about 35% of full-year sales.
Big-name products coming to market include the third Transformers film, the latest instalment of Pirates of the Caribbean, Bridesmaids and Fast & Furious 5.
Top 10 titles sold on DVD and Blu-ray in the six months to 30 June 2011
1. Harry Potter – The Deathly Hallows Part 1 (Warner Home Video) – has sold more than 2m and had the biggest week one sales so far this year of 1.6m discs
2. The King's Speech (Momentum) – more than 1.2m
3. Despicable Me (Universal Pictures) – 854,000, tops the children's chart
4. Paul (Universal Pictures) – 593,000, new release in June
5. Inception (Warner Home Video) – 511,000
6. Tangled (Walt Disney) – more than 507,000, number two in the children's chart
7. The Hangover (Warner Home Video) – 418,000
8. Taken (20th Century Fox Home Entertainment) – 415,000
9. Due Date (Warner Home Video) – 347,000
10. Grown Ups (Sony Pictures) – 223,000
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