The UK entertainment and media market will reach $155 billion by 2028

Streaming services and cinema are set to play a key role in the UK’s entertainment and media (E&M) market, which is set to become the largest in Europe by 2025, overtaking Germany, according to the latest Global Entertainment & Media PwC’s Outlook 2024-2028.

The report estimates that UK E&M revenues will exceed £100 billion ($128 billion) this year and reach £121 billion ($155 billion) by 2028, rising to a compound annual rate of 4%.

The UK streaming market, the largest in Western Europe and the third largest globally, is navigating a maturing landscape. While subscriptions are expected to grow from £6.5bn in 2024 to £8.3bn in 2028, growth rates are slowing. In response, streaming platforms are exploring new revenue streams.

Ben Bird, entertainment and media sector leader at PwC UK, said: “Operators are leveraging their content rights and original productions to drive uptake, leaving consumers having to subscribe to multiple services or switch platforms to access the content I want.” He added that ad-supported plans are driving growth, “in some cases offering the chance to subscribe for a little less.”

Bird highlighted the strong performance of the streaming market, noting its rapid expansion despite intense competition and market maturity. He pointed out that the sector has seen remarkable growth, nearly doubling in size since 2020, partly due to the boost it received during the pandemic. Bird added that even in the face of price hikes by major platforms and challenging economic conditions, the streaming market has maintained its robust growth trajectory.

By 2028, advertising is expected to account for 30% of UK streaming revenue, up from 24% in 2024, as services introduce ad-based variants and explore other monetization strategies.

The cinema sector is experiencing a robust recovery, with total revenues expected to grow at a compound annual rate of 6% over the next four years. Cinema admissions are expected to grow at an annual rate of 5%. The industry, buoyed by blockbuster releases such as “Barbie” and “Oppenheimer” in 2023, is poised for further growth with major releases slated for 2025. Box office spending is expected to exceed pre-Covid levels in 2027, reaching £1.3 billion by 2028. .

Internet advertising continues to be a key growth driver, expected to grow from £32 billion in 2024 to £44 billion by 2028. Paid search, particularly in the retail sector, will accounted for more than half of total internet advertising revenue by 2028.

The UK gaming market is forecast to maintain its position as the largest in Europe, with total revenue from video games and esports set to grow from £7.4bn in 2024 to £8.4bn in 2028. Social and casual games are expected to generate more than half of total UK video game revenue by 2028.

Live music ticket sales are forecast to grow from £1.75bn in 2024 to £1.9bn by 2028, driven by big events such as music festivals and world tours. By 2028, live music is expected to account for 31% of total music, radio and podcast revenue.

Mary Shelton Rose, partner and UK technology, media and telecommunications leader at PwC, said: “The UK entertainment and media industry has always been at the forefront of technological disruption. To capitalize on the many opportunities for growth, they must harness the power of new and emerging technologies such as GenAI, reshape their business and creative models, and make better use of technology for advertising.”