Digital Downloads to reach £163 this year

Market Analysts Verdict Research are predicting that UK music and video download sales will surpass £160m this year jumping to nearly £600m by the end of 2012.

Verdict based themselves on a conservative 30% annual growth rate to come up with this figure, down from 46% AGR that the market has witnessed in 2007.

At this rate, download might account for more than half of the UK music and video market as early as 2016. In contrast, CD and DVD spending though were down by nearly 3%.

However, grocery retailers which are becoming key actors in this market are hoping that next generation high definition content is going to "revive a depressed market".

Although the shift from physical to digital format has caused turmoil in the segment, high street stores like Virgin and HMV are expected to recover and thrive because of their position in the market.