Sales of DVDs and Blu-Rays confounded the doom-mongers by rising a total of 8 per cent to £474m in December against a year earlier, despite the rise of online formats and the threat of piracy.
British films fuelled the boom as Harry Potter and the Deathly Hallows, The Inbetweeners Movie and The King's Speech were among the top-sellers.
The data from the British Video Association (BVA) showed consumers still wanted to give physical gifts at Christmas, when around a quarter of all videos are sold each year. DVD sales rose by 6 per cent in December, while Blu-Rays were up 27 per cent.
The annual home video market is worth £2.25bn a year. Overall sales of physical discs fell 4.9 per cent in value last year while online and digital streaming rose 15 per cent.Reuse content