Amazon is now the UK’s number one entertainment retailer in terms of market share, according to new figures from Kantar Worldpanel.

The company took 22.4% of the market for videos, games and music in the 12 weeks ending December 26 2011, while HMV had a 17.5% share.

For the same period in 2010 HMV took 19.6% of the market and Amazon 19.4%.

Judging by the amount of column inches waxing lyrical about HMV’s financial woes of late, it may come as a surprise to some that it retains its place as the nation’s number two entertainment retailer.

It made losses of £36m last year and has had to close around 30 stores in recent months while trying to offload its live music venues.

Despite a reliance on its physical sales and a recent plan to increase the amount of vinyl records in-store, HMV has made a belated effort to embrace digital media.

In November it launched an on-demand video streaming service to complement its digital music store, but it faces stiff competition from established online brands like iTunes, Amazon and LoveFilm.

Amazon’s rise to the top spot is no surprise as it consistently ranks among the top brands for customer satisfaction and often undercuts offline retailers on price.

With rumours that the e-tailer plans to open a brick-and-mortar store in Seattle, it could at some point be taking on HMV in its natural habitat.

Kantar’s data also shows that supermarkets are gaining a strong foothold in the entertainment market.

Following HMV, the next four retailers were Tesco (11.4%), Asda (8.1%), Game (7.7%) and Sainsbury’s (5.2%). now has 4.9% of the sector, iTunes has just 3% and Morrisons has 2.7%.

Overall the home entertainment market declined by just under 4% year-on-year in December, but this was less than the 8% fall witnessed 12 months previously according to the figures.