Streaming and Cinema Dominate the Evolving U.K. Entertainment Landscape

The U.K. entertainment and media (E&M) market is poised to become Europe's largest by 2025, surpassing Germany, according to PwC's latest Global Entertainment & Media Outlook 2024-2028. Streaming services and the cinema industry are set to play pivotal roles in this dynamic market, navigating a rapidly changing landscape.

Unlocking the Future of U.K. Entertainment: Streaming, Cinema, and Beyond

Streaming Services Adapt to a Maturing Landscape

The U.K.'s streaming market, the largest in Western Europe and third globally, is undergoing a transformation. 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, leveraging their content rights and original productions to boost take-up. Consumers are now required to subscribe to multiple services or rotate platforms to access the content they desire. However, the introduction of ad-supported plans is driving growth, offering consumers the opportunity to subscribe for slightly less.

Cinema Sector Stages a Robust Recovery

The cinema sector is showing a strong 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.

Advertising Drives Growth Across Platforms

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. In the streaming market, advertising is projected to account for 30% of U.K. streaming revenues by 2028, up from 24% in 2024, as services introduce ad-based variants and explore other monetization strategies.

Gaming and Live Music Sectors Thrive

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.

Embracing Technological Disruption

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, reshape its business and creative models, and better leverage technology for advertising. By embracing these innovations, the industry can stay ahead of the curve and continue to thrive in the ever-evolving landscape.