Streaming services and cinema are set to play pivotal roles in the U.K.‘s entertainment and media (E&M) market, which is on track to become Europe’s largest by 2025, overtaking Germany, according to PwC‘s latest Global Entertainment & Media Outlook 2024-2028.
The report projects U.K. E&M revenue to surpass £100 billion ($128 billion) this year and reach £121 billion ($155 billion) by 2028, growing at a compound annual rate of 4%.
The U.K.’s streaming market, the largest in Western Europe and third globally, is navigating 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, entertainment and media sector leader at PwC U.K., noted: “Operators are leveraging their content rights and original productions to boost take up, leaving consumers needing to subscribe to multiple services or rotate platforms to access the content they desire.” He added that ad-supported plans are driving growth, “in some cases offering the chance to subscribe for slightly less.”
Bird emphasized the streaming market’s strong performance, noting its rapid expansion despite intense competition and market maturity. He pointed out 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 robust growth trajectory.
By 2028, advertising is projected to account for 30% of U.K. streaming revenues, up from 24% in 2024, as services introduce ad-based variants and explore other monetization strategies.
The cinema sector is showing robust recovery, with total revenue forecast to grow at a 6% compound annual rate over the next four years. Cinema admission volumes are expected to increase at a 5% annual rate. The industry, bolstered by blockbuster releases like “Barbie” and “Oppenheimer” in 2023, is poised for further growth with major releases slated for 2025. Box office spend is projected to surpass pre-COVID levels in 2027, reaching £1.3 billion by 2028.
Internet advertising continues to be a key growth driver, expected to increase from £32 billion in 2024 to £44 billion by 2028. Paid search, particularly in the retail sector, is set to account for over half of total internet advertising revenue by 2028.
The U.K. gaming market is forecast to retain its position as Europe’s largest, with total video games and esports revenue projected to grow from £7.4 billion in 2024 to £8.4 billion in 2028. Social and casual gaming is expected to generate more than half of the U.K.’s total video games revenue by 2028.
Live music ticket sales are anticipated to grow from £1.75 billion in 2024 to £1.9 billion by 2028, driven by large 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 U.K. technology, media and telecoms leader at PwC, said: “The U.K. entertainment and media industry has always been at the forefront of technological disruption. To capitalize on the many growth opportunities, it must leverage the power of new and emerging technologies such as GenAI, re-shape its business and creative models, and better leverage technology for advertising.”