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Asda marketing strategy backfires as it loses massive share of physical entertainment market

Asda’s introduction of an £11 price point on new release DVDs has backfired, as consumers switch to cheaper retailers coupled with ongoing declines of physical entertainment sales.

Asda saw the largest decline in the video market as its market share fell from 15.0 per cent to 11.7 per cent year-on-year in the 12 weeks to 5 July.

As shoppers switched to cheaper retailers, Amazon and Tesco were the major winners, taking 22.6 per cent (up 1.6 per cent year-on-year) and 15.2 per cent (up 0.9 per cent) respectively.

Tesco’s boost in market share was help by the release of ‘The Hobbit: The Battle of the Five Armies’ and was able to secure over a quarter of the title's physical sales.

Despite all being level this time last year for market share, Amazon and Tesco are now ahead of HMV which lost share of the market to now hold 14 per cent.

The figures, from Kantar Worldpanel, also showed that despite a general decline of the physical entertainment market, it does appear to be slowing of late, down three per cent this quarter versus seven per cent the same time last year.

Games have driven much of the sales, supported by growth in software for the current generation of consoles.

As a result, retailer Game has managed to increase its market share within the sector to 31.7 per cent from 29.1 per cent last year.

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