Sales of DVD and Blu-ray discs have slid over the first half of the year, just as spending on digital downloads and streaming has taken off.

Popular films such as Harry Potter and The King’s Speech, failed to reverse a trend which has seen video entertainment sales slump by 8.1%, bringing in revenue of slightly more than £1bn over the period.

Over the same period digital based viewing increased by 18% - according to the British Video Association.

BVA director general Lavina Carey said: “Digital is growing and has huge potential with the growth of internet-connected devices such as smartphones and tablets now an accepted norm for video viewing."

Traditionally the second half of the year is a more fruitful period for film studios as the Christmas period accounts for 35% of all sales.

Physical disc sales accounted for 96.5% of the home entertainment market in 2010.