UK consumer spending for both physical and digital video entertainment has increased by 8.2% to £993m for the first half of 2013 as against the comparable period of 2012, reported the British Video Association (BVA).
Majority of the sales were witnessed in digital video services with downloading and streaming surging by 42.9% to £228.1m for the first six months of 2013.
Physical discs, meanwhile, have accounted for half-yearly sales of £632.5m, a growth of 2.5% compared to £616.8m reported in the first half of 2012.
The increase in the physical video sector is driven by the sales of Blu-ray discs that recorded a 37% increase to £117.2m.
BVA director general Lavinia Carey said that the first half year results were far better than the forecasts, which were mostly based on retail slowdown during January 2013.
"Distributors have risen to the challenge and new retailers have entered the market to offer DVDs, which remain hugely popular with shoppers, in a wider range of stores," added Carey.
"An increase in the value of like-for-like sales of discs and digital video demonstrates that people are spending money on both, something BVA consumer research bears out."
Meanwhile, UK supermarkets got a 49% share in total sales value during the first half of the year.
Despite the closure of a number of stores by HMV and Blockbuster, around 1,000 more music stores across supermarkets, petrol stations and department stores are retailing DVD and Blu-ray discs.