The entertainment and media market in the United Kingdom is projected to experience significant growth over the next decade, according to a new report. The entertainment industry is expected to surpass $128 billion in revenue this year and climb to $155 billion by 2028, the report from PricewaterhouseCoopers (PwC) revealed.
This growth would see the U.K. overtake Germany as the largest entertainment market in Europe by 2025. Streaming services and the cinema sector will play key roles in powering the expansion. Streaming revenue is forecast to rise from $8.2 billion in 2024 to $10.7 billion in 2028. However, the rate of streaming growth will slow as the market matures.
In response, streaming companies are exploring additional revenue streams and strategies. They are using their content and original shows to attract more subscribers. But people may need multiple subscriptions or switch between services to access desired shows. Ads are also becoming an important way for services to offer lower priced subscription options, according to Ben Bird, PwC’s entertainment head.
Despite challenges like competition, maturity, and price hikes, streaming has proven resilient. Bird noted the market has nearly doubled in size since 2020 during the pandemic boost. Advertising is predicted to account for 30% of U.K. streaming revenue by 2028 compared to 24% in 2024.
Cinemas are also showing strong recovery signs. Box office revenue is forecast to increase 6% annually over four years. Theater attendance is expected to rise 5% per year. Blockbusters set for release in 2023 like “Barbie” and “Oppenheimer” are giving the industry momentum. Box office spending will surpass pre-pandemic levels in 2027, hitting $1.7 billion by 2028.
Other findings show internet advertising, led by retail searches, will grow from $41 billion in 2024 to $56 billion by 2028. The U.K. will keep its spot as Europe’s largest gaming market, with revenues projected to increase from $9.5 billion to $10.8 billion. Live music ticket sales are predicted to climb from $2.2 billion to $2.5 billion, led by festivals and tours.
Mary Shelton Rose, PwC’s telecoms leader, emphasized the need for innovation. As consumer preferences and technologies evolve, the entertainment industry must adapt to unlock opportunities through new business models and emerging technologies like artificial intelligence. With a forecasted $155 billion annual market, now is the time for creativity and change.
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