Britons now spend more on "pay monthly" entertainment services such as Spotify and Netflix than on physical or download purchases

Britons now spend more on "all-you-can-eat" pay monthly entertainment services like Spotify and Netflix than they do on downloading and physical purchases. 

For the first time, the Entertainment Retailers Association (ERA) reports, Britain has gone "pay monthly" with the way the public spends its money on entertainment. This means spending on access to services such as Spotify and apps like Pokemon Go are now greater than on "ownership models" such as discs and digital downloads.

The news comes as ERA also reveals that the British public now spends nearly 80% of their entertainment expenditure online, or 80 pence in their entertainment pound.

Across music, games and video, 51% of the UK's entertainment revenue came from those paying for access to pay monthly streaming services and apps, while the remaining 49% was made from "ownership". 

The figures are included in the latest edition of the ERA Yearbook, which is published today (March 7) and is regarded as the definitive statistical source on the UK games, video and music markets.

ERA CEO Kim Bayley said: “We are seeing the rise of a pay monthly generation in entertainment. Rather than buying music, video or games outright, the British public is being won over by rental or all-you-can eat services which are available 24/7. If downloads represented the first digital revolution in entertainment, we are now at digital 2.0, the subscription age.” 

Despite the broader trend, the report also reveals that plenty of music fans remain devoted to ownership formats, with sales bolstered by the boom in vinyl (up another 54.4% in 2016 to £65.6m) and deluxe CD and box set editions, as well as an increase in the amount outlets selling music and/or video, which has for the eighth consecutive year to 15,300.

Bayley added: “Digital may grab the headlines, but we should not underestimate the fondness of the UK public for physical formats in particular. While the vinyl revival has been well reported, millions of people still regard DVDs, CDs and console game discs as the best way to access entertainment.

"Discs are durable, convenient and are still probably the best entertainment option for gifting."