How Britain Shops: Music & Video 2010

TABLE OF CONTENTS

Overview 1
Introduction 1
Summary 1
Executive Summary 2
KEY FINDINGS 2
RETAILER HIGHLIGHTS 4
Profile of Sector Shoppers 17
Music & video shoppers dropped back in 2010 17
Penetration of Music & Video shoppers 22
Younger, AB shoppers dominate music & video 22
Retailer Usage 24
HMV continues to lead considerably 24
Main User Share by Region 28
HMV dominates 28
Conversion Rates 29
Online customers shop around the most 29
Shopping Around 32
Play.com users shop around the most 33
LOYALTY 35
Loyalty has risen again 35
DRIVERS OF LOYALTY/DISLOYALTY 39
Range in the lead 39
Amazon 47
Amazon has benefited from the increased trend for online shopping 47
Visitors 48
Main users 50
Conversion rates 52
Loyalty 54
Competitors 58
Asda/George 60
Loyalty remains an issue 60
Visitors 62
Main users 64
Conversion rates 66
Loyalty 68
Competitors 72
HMV 74
HMV has become more authoritative 74
Visitors 75
Main users 77
Conversion rates 79
Loyalty 81
Competitors 85
iTunes 87
The popularity of MP3 devices has driven iTunes' success 87
Visitors 88
Main users 90
Conversion rates 92
Loyalty 94
Competitors 98
Morrison 100
Loyalty remains low 100
Visitors 101
Main users 103
Conversion rates 105
Loyalty 107
Competitors 111
Play.com 113
Play.com uses its low price stance 113
Visitors 114
Main users 116
. 117
Conversion rates 118
Loyalty 120
Competitors 124
Tesco 126
Tesco's focus on its non-food offering has been positive, but competition is increasing 126
Visitors 127
Main users 129
Conversion rates 131
Loyalty 133
Competitors 137
Methodology 139
Basic methodology 139
Detailed methodology 141
Disclaimer 143

TABLE OF FIGURES

Figure 1: Music & video share of shoppers, 2006–2010 17
Figure 2: Profile of music & video shoppers (%), by gender, 2006–2010 19
Figure 3: Profile of music & video shoppers (%), by age bracket, 2006–2010 20
Figure 4: Profile of music & video shoppers (%), by socioeconomic class, 2006–2010 21
Figure 5: Percentage of consumers that shop for music & video, by demographics, 2010 22
Figure 6: Percentage of consumers that shop for music & video, by TV region, 2010 23
Figure 7: Concentration of main user share of top five retailers in 2008 25
Figure 8: Concentration of main user share of top five retailers in 2009 26
Figure 9: Concentration of main user share of top five retailers in 2010 27
Figure 10: Average rate of conversion from visitor to main user (%), 2006–2010 29
Figure 11: Rate of conversion from visitors to main users (%), by retailer, 2010 31
Figure 12: Average number of other stores used, by retailer, 2010 33
Figure 13: Average number of other stores used, 2006–2010 34
Figure 14: Percentage of music & video shoppers that are loyal to their main store, 2006–2010 35
Figure 15: Percentage of music & video shoppers that are loyal to their main store, by demographic group, 2010 35
Figure 16: Percentage of music & video shoppers that are loyal to their main store, by retailer, 2010 37
Figure 17: Annual percentage point change in loyalty rates, by retailer, 2010 38
Figure 18: Percentage of loyal main users identifying drivers of loyalty, 2006–2010 39
Figure 19: Visitor share, 2006–2010 48
Figure 20: Visitor share, by demographic group, 2010 48
Figure 21: Main user share, 2006–2010 50
Figure 22: Main user share, by demographic group, 2010 51
Figure 23: Conversion rates, 2006–2010 52
Figure 24: Conversion rates, by demographic group, 2010 53
Figure 25: Loyalty, 2006–2010 54
Figure 26: Loyalty, by demographics, 2010 54
Figure 27: Preference stores, 2010 57
Figure 28: Shopping around, 2010 58
Figure 29: Visitor share, 2006–2010 62
Figure 30: Visitor share, by demographic group, 2010 63
Figure 31: Main user share, 2006–2010 64
Figure 32: Main user share, by demographic group, 2010 64
Figure 33: Conversion rates, 2006–2010 66
Figure 34: Conversion rates, by demographic group, 2010 67
Figure 35: Loyalty, 2006–2010 68
Figure 36: Loyalty, by demographics, 2010 69
Figure 37: Preference stores, 2010 71
Figure 38: Shopping around, 2010 72
Figure 39: Visitor share, 2006–2010 75
Figure 40: Visitor share, by demographic group, 2010 76
Figure 41: Main user share, 2006–2010 77
Figure 42: Main user share, by demographic group, 2010 78
Figure 43: Conversion rates, 2006–2010 79
Figure 44: Conversion rates, by demographic group, 2010 80
Figure 45: Loyalty, 2006–2010 81
Figure 46: Loyalty, by demographics, 2010 82
Figure 47: Preference stores, 2010 84
Figure 48: Shopping around, 2010 85
Figure 49: Visitor share, 2006–2010 88
Figure 50: Visitor share, by demographic group, 2010 89
Figure 51: Main user share, 2006–2010 90
Figure 52: Main user share, by demographic group, 2010 91
Figure 53: Conversion rates, 2006–2010 92
Figure 54: Conversion rates, by demographic group, 2010 93
Figure 55: Loyalty, 2006–2010 94
Figure 56: Loyalty, by demographics, 2010 95
Figure 57: Preference stores, 2010 97
Figure 58: Shopping around, 2010 98
Figure 59: Visitor share, 2006–2010 101
Figure 60: Visitor share, by demographic group, 2010 102
Figure 61: Main user share, 2006–2010 103
Figure 62: Main user share, by demographic group, 2010 104
Figure 63: Conversion rates, 2006–2010 105
Figure 64: Conversion rates, by demographic group, 2010 106
Figure 65: Loyalty, 2006–2010 107
Figure 66: Loyalty, by demographics, 2010 108
Figure 67: Preference stores, 2010 110
Figure 68: Shopping around, 2010 111
Figure 69: Visitor share, 2006–2010 114
Figure 70: Visitor share, by demographic group, 2010 115
Figure 71: Main user share, 2006–2010 116
Figure 72: Main user share, by demographic group, 2010 117
Figure 73: Conversion rates, 2006–2010 118
Figure 74: Conversion rates, by demographic group, 2010 119
Figure 75: Loyalty, 2006–2010 120
Figure 76: Loyalty, by demographics, 2010 121
Figure 77: Preference stores, 2010 123
Figure 78: Shopping around, 2010 124
Figure 79: Visitor share, 2006–2010 127
Figure 80: Visitor share, by demographic group, 2010 128
Figure 81: Main user share, 2006–2010 129
Figure 82: Main user share, by demographic group, 2010 130
Figure 83: Conversion rates, 2006–2010 131
Figure 84: Conversion rates, by demographic group, 2010 132
Figure 85: Loyalty, 2006–2010 133
Figure 86: Loyalty, by demographics, 2010 133
Figure 87: Preference stores, 2010 136
Figure 88: Shopping around, 2010 137
Figure 89: Sample size by sector 140

TABLE OF TABLES

Table 1: Profile of music & video shoppers, by region, 2010 18
Table 2: Percentage of active music & video shoppers regularly using each retailer, 2006–2010 24
Table 3: Percentage of active music & video shoppers regularly using each retailer, 2006–2010 24
Table 4: Share of active music & video shoppers naming a retailer as their main store, by TV region (%), 2010 28
Table 5: Average rate of conversion from visitor to main user, by region, 2010 30
Table 6: Average number of other stores used, by TV region, 2010 34
Table 7: Percentage of music & video shoppers that are loyal to their main store, by TV region, 2010 36
Table 8: Detailed drivers of loyalty (%), 2010 40
Table 9: Music & video loyalty score, by retailer, 2006–2010 41
Table 10: Music & video loyalty score, by retailer, 2006–2010 42
Table 11: Music & video disloyalty score, by retailer, 2006–2010 43
Table 12: Music & video disloyalty score, by retailer, 2006–2010 44
Table 13: What disloyal users preferred about other music & video stores, 2006–2010 45
Table 14: What disloyal users preferred about other music & video stores, 2006–2010 46
Table 15: Visitor share, by region, 2010 49
Table 16: Main user share, by region, 2010 51
Table 17: Conversion rates, by region, 2010 53
Table 18: Loyalty, by region, 2010 55
Table 19: Drivers of loyalty, 2010 55
Table 20: Drivers of disloyalty, 2010 56
Table 21: Potential changes, 2010 56
Table 22: Other music & video stores used, 2006–2010 58
Table 23: Other retailers used, 2010 59
Table 24: Visitor share, by region, 2010 63
Table 25: Main user share, by region, 2010 65
Table 26: Conversion rates, by region, 2010 67
Table 27: Loyalty, by region, 2010 69
Table 28: Drivers of loyalty, 2010 70
Table 29: Drivers of disloyalty, 2010 70
Table 30: Potential changes, 2010 71
Table 31: Other music & video stores used, 2006–2010 72
Table 32: Other retailers used, 2010 73
Table 33: Visitor share, by region, 2010 76
Table 34: Main user share, by region, 2010 78
Table 35: Conversion rates, by region, 2010 80
Table 36: Loyalty, by region, 2010 82
Table 37: Drivers of loyalty, 2010 83
Table 38: Drivers of disloyalty, 2010 83
Table 39: Potential changes, 2010 84
Table 40: Other music & video stores used, 2006–2010 86
Table 41: Other retailers used, 2010 86
Table 42: Visitor share, by region, 2010 89
Table 43: Main user share, by region, 2010 91
Table 44: Conversion rates, by region, 2010 93
Table 45: Loyalty, by region, 2010 95
Table 46: Drivers of loyalty, 2010 96
Table 47: Drivers of disloyalty, 2010 96
Table 48: Potential changes, 2010 97
Table 49: Other music & video stores used, 2006–2010 99
Table 50: Other retailers used, 2010 99
Table 51: Visitor share, by region, 2010 102
Table 52: Main user share, by region, 2010 104
Table 53: Conversion rates, by region, 2010 106
Table 54: Loyalty, by region, 2010 108
Table 55: Drivers of loyalty, 2010 109
Table 56: Drivers of disloyalty, 2010 109
Table 57: Potential changes, 2010 110
Table 58: Other music & video stores used, 2006–2010 112
Table 59: Other retailers used, 2010 112
Table 60: Visitor share, by region, 2010 115
Table 61: Main user share, by region, 2010 117
Table 62: Conversion rates, by region, 2010 119
Table 63: Loyalty, by region, 2010 121
Table 64: Drivers of loyalty, 2010 122
Table 65: Drivers of disloyalty, 2010 122
Table 66: Potential changes, 2010 123
Table 67: Other music & video stores used, 2006–2010 125
Table 68: Other retailers used, 2010 125
Table 69: Visitor share, by region, 2010 128
Table 70: Main user share, by region, 2010 130
Table 71: Conversion rates, by region, 2010 132
Table 72: Loyalty, by region, 2010 134
Table 73: Drivers of loyalty, 2010 134
Table 74: Drivers of disloyalty, 2010 135
Table 75: Potential changes, 2010 135
Table 76: Other music & video stores used, 2006–2010 138
Table 77: Other retailers used, 2010 138



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