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Digital Downloads to reach £163 this year

Market Analysts Verdict Research (opens in new tab) 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 (opens in new tab) 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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.