By admin
UK to Rule $108B Media Market, Takes European Crown: PwC Report
The United Kingdom is projected to maintain its dominant position as the foremost entertainment and media market in Europe until 2027, surpassing both Germany and France. This forecast comes from PwC’s recently released Global Entertainment & Media (E&M) Outlook 2023-2027 report.
According to the report, the revenue generated by the UK’s entertainment and media industry is expected to reach £85 billion ($108 billion) this year. Furthermore, it anticipates a compound annual growth rate (CAGR) of 4% over the next four years, resulting in an overall revenue of £100 billion by 2027. In comparison, Germany, which is predicted to reach £83.1 billion in 2023, and France, expected to touch £54.6 billion in the same year, are projected to experience growth and reach £90.8 billion and £61.1 billion respectively by 2027.
According to the latest projections, the United Kingdom is expected to witness substantial growth in SVOD (Subscription Video on Demand) revenue over the next four years. The revenue is forecasted to increase from £3.6 billion in 2023 to £4.7 billion by 2027. Notably, in 2025, SVOD revenue (£4.2 billion) is predicted to surpass TV subscriptions (£4.1 billion). The report highlights the growing presence of AVOD (Advertising Video on Demand), which offers consumers the opportunity to shift away from subscription-based models.
In a promising recovery trajectory after the pandemic, the cinema industry is set to experience steady growth over the next four years, with a compound annual growth rate (CAGR) of 7%. Box office revenues are expected to exceed pre-pandemic levels and reach £1.3 billion by 2025.
The internet access sector is also poised for significant expansion, with revenue projected to reach £16.7 billion this year and further grow to £20 billion by 2027. The driving force behind this growth in the UK market is mobile internet access. The report predicts a tipping point in 2023 when mobile internet will surpass fixed broadband as the largest contributor to total internet access revenue. By 2027, mobile internet access revenue is expected to account for 55% of the total internet access revenue.
The utilization of data services is expected to experience significant growth, more than doubling as annual data consumption rises from 158,000 petabytes in 2022 to 415,000 petabytes in 2027. This surge is primarily attributed to increased consumption of streaming services, social video platforms, and broadcast Video on Demand (VOD) services, which are projected to collectively account for 36% of all data consumption in 2027.
In terms of advertising revenue in the United Kingdom, the overall forecast for 2023 stands at £35.7 billion, with digital advertising dominating the landscape. Internet advertising revenue is expected to reach £27.5 billion in 2023 before further increasing to £35.5 billion by 2027, with a compound annual growth rate (CAGR) of 6%. Conversely, TV advertising is anticipated to decline by 3% in 2023 due to tightened budgets but is projected to recover with 4% growth in 2024, reaching £4.8 billion.
The Virtual Reality (VR) market revenue in the U.K. is set to witness substantial growth, increasing from £1.3 billion in 2023 to £2 billion in 2027, with a CAGR of 10%. Within the VR sector, the segment related to video gaming is experiencing robust growth at a rate of 22% per year from 2022 to 2027, fueled by the release of new games. During the same period, the installed base of VR headsets in the U.K. is forecasted to grow from 1.7 million units to 4.2 million units. The Meta Quest 2 has emerged as the leading and fastest-growing headset category, representing over 80% of the total installed base in 2027. The report also suggests that Apple’s forthcoming headset could further stimulate the market.