Home Business NewsTech News UK entertainment and media sector to grow by £8bn over the next four years

UK entertainment and media sector to grow by £8bn over the next four years

by LLB Reporter
6th Jun 18 7:38 am

The Entertainment and Media (E&M) sector will be worth £76bn by 2022, up from £68bn this year, according to PwC’s latest Global Entertainment & Media (E&M) Outlook 2018-2022.

Overall, the market will grow by £8bn over the next four years, making the UK the second largest market in Europe, the Middle East and Africa (EMEA), after Germany.

Commenting on the seemingly unstoppable growth in the E&M sector, Mark Maitland, UK head of Entertainment and Media at PwC, said: “The UK’s entertainment and media sector is forecast to grow at a healthy rate over the next four years with some of the largest and fastest growing markets in digital and technology, reflecting its location as a place for innovation.

“To stay ahead of the curve, entertainment and media companies must revisit how they envision their business generates revenues and how they build and retain trust. Given the pace and scale of change underway, speed is key.

“Consumers are rejecting the one-size fits all content experiences they were once fed. As a result, it’s vital for companies to use digital delivery, data analytics and AI to personalise and tailor their offerings to provide a unique experience.”

Biggest revenue generators

Consumer spending on internet access will bring in the most revenue over the forecast period rising from £13.7bn this year to £17bn by 2022, a 6 per cent CAGR. Last year, for the first time, consumers spent more on mobile internet access than fixed broadband access. PwC now expects smartphone ownership in the UK to hit more than 70 million and, as a result, mobile internet access is forecast to account for more than half of overall internet access revenue in four years time.

Advertising revenue will account for a quarter of total E & M revenue by 2022, with digital spend continuing to dominate growth. Internet advertising spend will grow from £12bn in 2018 to £15bn by 2022, a 6.8 per cent compound annual growth rate (CAGR). Mobile is forecast to become the dominant segment this year, accounting for half of all internet advertising. This year will also see digital billboard displays (digital out-of-home) overtake physical out of home (OOH) for the first time. Digital OOH spend will reach £517m in 2018 and increase to £689m by 2022, a 9 per cent CAGR. Podcast advertising, included in PwC’s analysis for the first time, is forecast to grow at a 38 per cent CAGR reaching £34m, up from £11m in 2018.

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