The UK’s entertainment and media sector is in superb health, projected to surpass £100 billion in revenue this year on its way to over £120bn by 2028 according to a new report from PwC. As consumer behaviour shifts, it’s important to understand what is behind the growth of the industry and its position in the digital economy.
The role of technology and digital transformation
Entertainment has been at the forefront of the transition to a largely digital economic landscape, with streaming services, digital gaming platforms and social media inseparable parts of people’s everyday lives. Moving away from physical media has done wonders for accessibility, clearing barriers between product and consumer – if you can engage them, it’s easy for them to follow you to what you want them to see.
Streaming and on-demand content
With the likes of BBC iPlayer offering robust competition to international giants like Netflix and Amazon’s Prime Video, plus a host of other streaming services competing for slices of an ever-growing pie, job creation in the creative sector is extremely promising. Producers rush to meet demand by creating more and more content which can then be exported. The rise and rise of on-demand video through YouTube and TikTok as well as everyday streaming through Twitch means that consumers expect to find what they want quickly and conveniently.
Gaming and esports: a new frontier for growth
The role of gaming in the industry’s health cannot be understated. The UK has leaned into its appeal as a hub for esports to great success, with the field set to reach £220m revenue by 2027, while the appetite for gaming in general is massive. This isn’t just limited to console and PC titles, either – the UK’s gaming sector also includes platforms offering online roulette and other casino games that generate substantial revenue streams of their own while tapping into the fundamental appeal of play.
Tourism and live events: the recovery of physical entertainment
The post-pandemic recovery of the UK’s live events industry is well under way, underlined and then some by the astonishing £997m economic jump-start of Taylor Swift’s Eras Tour coming to the country in 2024. The public’s rediscovery of its love for live concerts, theatre and festivals contributes to the economy through tourism, ticket sales and hospitality, offering experiences that can’t be matched at home.
Challenges and future prospects
The entertainment industry isn’t without its challenges, of course. Inflation and rising operating costs risk pricing smaller organisations out of live spaces, while there are concerns about what might happen as regulations play catch-up to the rapid development of digital environments. But it’s likely to remain a flagship part of the UK economy, especially with its early investment into the still-developing fields of augmented reality (AR), virtual reality (VR) and artificial intelligence (AI) technologies.