Boost for Entertainment One as viewers embrace digital TV

Digital revenues doubled in the past six months at Peppa Pig and Twilight TV and film distributor Entertainment One as consumers embraced online viewing.

Chief financial officer Giles Willits credited a five-year deal with LoveFilm, Amazon's DVD and online rental firm, for boosting UK sales.

LoveFilm customers have exclusive access to E1 films such as Twilight during the "pay-TV" window, one year after a film's cinema release.

Willits said LoveFilm's entry into the rights market and the expected arrival of US rival NetFlix meant BSkyB's SkyMovies was finally facing a serious challenge. "We've been able to introduce a bit of competition into the market," he said.

Meanwhile, E1 has sold more than 150,000 copies of its phone app for kids' character Peppa Pig since its launch a year ago.

Revenues rose 1% to £205 million as E1 swung to a pre-tax profit of £9.8 million in the half-year to September 30 against a £1.5 million loss. Digital was 17% of turnover.

E1's latest film in the Twilight Saga, Breaking Dawn Part 1, starring Robert Pattinson, opens on Friday.