UK E&M industry revenue is expected to break through the £100 billion barrier this year and grow to £121 billion by 2028, at a compound annual growth rate (CAGR) of 4%.
PwC reported that advertising will dominate the UK E&M market, accounting for 39% of the sector’s revenues (2024), compared to 29% across Western Europe.
The UK advertising market is the most digitally advanced in Western Europe, with internet advertising accounting for 80% of total advertising revenue, compared to 66% for the region as a whole. The UK digital advertising market is forecast to grow from £32 billion in 2024 to £44 billion in 2028, a CAGR of 8%, one of the highest growth rates in the region.
Meanwhile, the services sector (internet access) is predicted to generate £32 billion by 2028, driven by a significant increase in 5G subscribers.
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UK OTT video subscribers will grow from £6.5 billion in 2024 to £8.3 billion in 2028, a compound annual growth rate of 6%. This growth will be supported by a crackdown on password sharing and the introduction of ad-based tiers. By 2028, advertising’s share of UK OTT streaming revenue will increase to 30% from 24% in 2024.
The UK is predicted to maintain its position as the largest and most established games market in Europe, with total video games and esports revenue forecast to grow from £7.4 billion in 2024 to £8.4 billion in 2028, at a compound annual growth rate of 3%.
Total cinema revenue is forecast to continue growing at a compound annual growth rate of 6% over the next four years, with the report predicting that box office revenue will surpass pre-COVID levels in 2027, reaching £1.3 billion by the end of the forecast period.
Live music ticket sales are expected to grow at a CAGR of 1.9% from £1.75 billion in 2024 to £1.9 billion in 2028, driven by music festivals and musicians’ world tours. By 2028, live music will account for 31% (£6.1 billion) of total music, radio and podcast revenue.
Mary Shelton-Rose, partner and UK technology, media and telecoms leader at PwC, said: “Our E&M industry is one of the UK’s fastest growing sectors, and to stay ahead we need to continue to invest in our people and embrace digital transformation to support further revenue growth.”
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