Around 97 percent of revenues for content sales in Western Europe will come from DVD and Blu-ray this year, leaving only three percent from legal video download services, according to a report from Futuresource Consulting.

Sales of DVD and Blu-ray movies in Western Europe are expected to be worth US$14.8 billion in revenue this year, compared to US$500 million for electronic sales, according to the report. The sales of packaged media are being driven by consumer demand for television series on DVD as well as blockbuster titles released on Blu-ray.

The report predicts online sales in both the United States and Western Europe won't gain traction until 2012, when online and mobile video will represent 13 percent of total video revenues in Western Europe. It concludes that online video revenue will be led by Apple’s iTunes Store, Microsoft’s Xbox Live and Sony’s recently launched PlayStation Network video service.