The UK entertainment and media (E&M) sector is on track to become the biggest in Europe, surpassing £100 billion this year. This is according to PwC’s Global Entertainment & Media Outlook, which estimates UK E&M will generate £121 billion in revenue by 2028, showing a compound annual growth rate (CAGR) of 4%. So, let’s take a look at some of the key elements that are fuelling the growth of the British E&M market.
Immersive Entertainment Set to Grow
Immersive digital entertainment has consistently been a firm favourite of the British public. iGaming has made an enduring impact on the E&M sector. This can be seen in the way that developers like Playtech, BGaming, Red Tiger Gaming, and so on, all continue to innovate their live games and slot games, which are then provided to iGaming platforms like Paddy Power. For example, Play N’ Go use bonus features like ‘pick a fire’ modifiers, grab features, and ‘slide n grab’ mechanics in Kingdom Below to diversify the gameplay of the slot game. These special features switch up the mechanics and style of the game, taking it beyond the simple, traditional gameplay of slot games of old, and therefore encouraging further iGaming innovations.
In terms of the wider UK gaming industry, it is predicted that it will rise from £7 billion to £8.4 billion in market value by 2028, making it one of the fastest-growing markets within the E&M industry. PwC attributes this fast-paced growth to the parallel shift in the accessibility of smartphone technology, alongside the rise in connectivity technologies like 5G. That said, research from Social Market Foundation (SMF) found that the UK lags behind other markets in terms of the availability and download speeds of 5G. This highlights further opportunity that could be capitalised on by British E&M in the future as 5G technology becomes more widespread and reliable.
Fuelled by Streaming
It might go without saying that streaming services are the backbone of the E&M industry. There are many service providers available to audiences in the UK, such as paid subscriptions like Netflix, Amazon Prime, and Disney+, as well as free or upgradeable platforms like BBC iPlayer, ITVX, and U. Between 2019 and 2024, subscriptions per household grew at a CAGR of 20%. By 2028, this is expected to amount to £8.3 billion, despite the CAGR slowing down to 3-6%.
This plateauing of growth within the streaming industry goes hand in hand with changing consumer behaviours. Hub Entertainment Research has found that audiences are becoming more tolerant of ad-supported subscriptions, as this allows them to access their streaming services for a smaller price – or even free. It is this shift towards ad-supported models that is driving the growth of the British E&M market. Whilst average revenue per subscription will not see a significant increase, it is said that by 2028, adverts will make up 43% of video revenues and 30% of overall streaming revenue in the UK. This positions the UK streaming market as the largest in Western Europe, and the third-largest in the world, thanks to adapting to and embracing ad-supported streaming.
As you can see, the growth and diversification of immersive entertainment and streaming services are fuelling the growth of the British E&M sector, allowing it to overtake Germany to eventually take on the title as the biggest E&M market in Europe.
