Streaming services and cinema will play a key role in the UK entertainment and media (E&M) market, which is on track to become the largest in Europe by 2025, according to PwC’s latest Global Entertainment & Media Outlook 2024-2028 report.
The report projects that UK E&M revenues will exceed £100 billion (US$128 billion) this year and reach £121 billion (US$155 billion) by 2028, growing at a compound annual rate of 4%.
The UK streaming market, the largest in Western Europe and the third largest globally, is undergoing a maturing landscape. While subscriptions are expected to rise from £6.5 billion in 2024 to £8.3 billion in 2028, growth rates are slowing. In response, streaming platforms are exploring new revenue streams.
Ben Bird, head of entertainment and media at PwC UK, said: “Operators are leveraging their content rights and original productions to drive uptake, forcing consumers to subscribe to multiple services or rotate platforms to access the content they want.” He added that ad-supported plans are driving growth, “in some cases offering the ability to subscribe for a little less.”
Bird highlighted the streaming market’s strong performance, noting its rapid expansion despite intense competition and market maturity. He noted that the sector has shown remarkable growth, with its size nearly doubling since 2020, partly due to the boost received during the pandemic. Bird added that even in the face of price increases by major platforms and challenging economic conditions, the streaming market has maintained its strong growth trajectory.
By 2028, advertising is projected to account for 30% of streaming revenue in the UK, up from 24% in 2024, as services introduce ad-based variants and explore other monetisation strategies.
The cinema sector is showing a strong recovery, with total revenues expected to grow at a compound annual rate of 6% over the next four years. Cinema ticket volumes are expected to rise at an annual rate of 5%. The industry, driven by blockbuster releases such as “Barbie” and “Oppenheimer” in 2023, is set for further growth with major releases planned for 2025. Box office spending is projected to surpass pre-COVID levels in 2027, reaching £1.3 billion in 2028.
Online advertising remains a key driver of growth, expected to rise from £32bn in 2024 to £44bn in 2028. Paid search, particularly in the retail sector, is projected to account for more than half of total online advertising revenue by 2028.
The UK video games market is expected to maintain its position as the largest in Europe, with total gaming and esports revenue projected to grow from £7.4bn in 2024 to £8.4bn in 2028. Social and casual games are expected to generate more than half of total UK video games revenue by 2028.
Live concert ticket sales are forecast to rise from £1.75bn in 2024 to £1.9bn in 2028, driven by major events such as music festivals and world tours. By 2028, live music is expected to account for 31% of total music, radio and podcast revenue.
Mary Shelton Rose, Partner and UK Head of Technology, Media and Telecoms at PwC, said: “The UK entertainment and media industry has always been at the forefront of technological disruption. To take advantage of the many growth opportunities, it must harness the power of new and emerging technologies like GenAI, restructure its business and creative models and better leverage technology for advertising.”
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