UK entertainment and media market to become largest in Europe

UK E&M revenue is expected to break the £100bn barrier this year before growing to £121bn by 2028 at a compound annual growth rate (CAGR) of 4%.

PwC reported that advertising makes up an outsized share of the E&M market in the UK, representing 39% of sector revenues (in 2024) vs. 29% across Western Europe.

The UK ad market is also the most digitally mature in Western Europe, with internet advertising representing 80% of total advertising revenues compared to 66% across the region. The UK digital advertising market is forecast to grow from £32bn in 2024 to £44bn in 2028, a CAGR of 8% which is amongst the highest in the region.

Meanwhile, the service sector (internet access) is forecast to generate £32bn by 2028 aided by significant growth in 5G subscriptions.

Read more Disney to invest $5bn in European film and TV production

UK subscriptions to OTT video services will rise to £8.3bn in 2028 from £6.5bn in 2024, representing a 6% CAGR. The growth will be supported by a crackdown on password sharing and the introduction of ad-based tiers. By 2028, advertising will account for 30% of UK OTT streaming revenues, up from 24% in 2024.

The UK is forecast to retain its position as the largest and most well-established gaming market in Europe. Total video games and esports revenue is forecast to grow from £7.4bn in 2024 to £8.4bn in 2028 at a CAGR of 3%.

Total cinema revenue is forecast to continue growing over the next four years at a CAGR of 6%. The report forecasts box office spend to surpass pre-Covid levels in 2027 and by the end of the forecast period be worth £1.3bn.

Live music ticket sales are expected to grow from £1.75bn in 2024 to £1.9bn by 2028 at a CAGR of 1.9% driven by music festivals and musician world tours. By 2028, live music will be worth 31% of total music, radio and podcast revenue (£6.1bn).

Mary Shelton Rose, Partner and UK Technology, Media and Telecoms Leader at PwC, said: “Our E&M industry is one of the UK’s strongest growth sectors. To stay ahead we must continue investing in talent and embracing digital transformation which will support further revenue growth.”

Read more University of York, dock10 and 2LE Media to develop AI tools for VP lighting