SCOTLAND'S digital entertainment sector employs around 100,000 people and generates annual sales of £5billion.

The industry - which ranges from television production to computer games - now accounts for 4% of Scotland's economic output, claims a new study.

Employment in the digital media and creative industries in Scotland almost matches the numbers directly employed in financial services.

The report, entitled Digital Entertainment In Scotland, says the sector is "punching above its weight" in terms of its value to the Scottish economy, but can deliver even more benefits.

It adds that there is huge potential for Scots firms to win a much bigger slice of the global digital entertainment market, which is estimated to be worth £760bn.

The report was unveiled at a conference at the Royal Concert Hall in Glasgow, attended by around 150 delegates from across the sector.

It was organised by start-up analysts Young Company Finance and venture management firm 2in10.

They found the combination of games, mobile and wireless technology, broadcasting, animation and the music industry provides around 6.7% of employment in Scotland.

Alistair Balfour, chairman of 2in10 said: "Digital entertainment is the fastest-moving area of global technology right now,."

He added that resources should be focused on proven areas of expertise - developing excellent games, and the creation of film or video content that works across a range of platforms.

Scotland has Europe's third largest games industry, with internationally known names such as Rockstar North -producers of the highly successful Grand Theft Auto game - Real Time Worlds, and Dynamo Games.

Mr Balfour added: " Above all, we need to think big."

Scottish Enterprise, which backed the research, underlined its flagship support project for broadcast and film in the shape of the Digital Media Quarter at Atlantic Quay in Glasgow.

Already home to the BBC, STV and studios Film City Glasgow, it will develop into one of the UK's key locations for the industry.

Next year the site will get a further boost when the Glasgow Art School Digital Design Studio moves in.