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Digital ways of watching TV and films are now more popular than DVDs. For the first time, streaming and downloads have overtaken sales of DVDs and Blu-ray discs.

Total revenue from digital video services reached £1.3 billion last year. That's a rise of almost 23 per cent.

In contrast, sales of DVDs and Blu-ray discs fell 17 per cent to £894 million. That's the first time these sales have slipped below £1 billion.

Rentals of DVDs and Blu-rays also fell, by 21 per cent to £49 million.

But the figures – from the Entertainment Retailers Association – paint a healthy picture of the UK's entertainment industry. Overall, sales are on the up. Total revenue from physical and digital sales of TV shows and films rose 2.2 per cent to £2.25 billion. The best seller of the year? 'Star Wars: The Force Awakens', which sold 2.3 million copies.

Total UK revenue from music, TV shows films and video games reached a record £6.3 billion last year.

Kim Bayley, chief executive of the Entertainment Retailers Association, said these figures reflected our changing viewing habits.

"We've seen an explosion of technology that has allowed people to consume entertainment in different ways," she said. "Physical entertainment retailing is clearly off its peak. A multichannel economy is going to exist for some years to come. The strength of the DVD and CD formats over the Christmas period shows that physical still dominates when it comes to gifting, for instance."

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