Here you will find a snapshot of the major trends in the UK entertainment and media industry from both an advertising and consumer perspective along with our predictions for the next 5 years.
The digital entertainment & media sector will grow twice as fast as UK GDP
Largest TV industry in the world behind US, China and Japan
The UK Advertising industry will reach £20bn this year
Annual growth of the VR sector over the next 5 years
In our 2017 Global Entertainment & Media Outlook, we predict the UK sector will grow at a compound rate of 3% per annum over the next 5 years to be worth £72 billion by 2021. Digital services will account for over 60% of all spend in the sector growing at 5.8% CAGR per annum.
The fastest growing sectors will be Virtual Reality (VR) and E-Sports, both new additions to our interactive forecasting tool, whilst in the analogue world TV Advertising continues to grow.
Consumers’ love of video content on their terms continues to dominate their spending habits over the next 5 years.
In 2021 consumers will spend more on video content than cinema admissions as “Netflix and chill” and binge watching content continues to shape viewing habits.
Interactive video content through E-Sports, Virtual Reality and Video games continue to be firm favourites amongst consumers, with exceptional growth forecast over the next 5 years.
The VR sector will be worth £801m in 2021, all of which is consumer spend. With over 16m VR headsets in the UK alone, innovative brands and content creators have a real opportunity to engage with consumers on a new level if they can enhance their experience.
However with Ad Blocking rife, and consumers becoming more savvy with who they share their data with, they may have to start paying more for quality content and experiences if advertisers are unable to monetise their content, something they seem willing to do for TV and music so far.
The internet continues to dominate the advertising sector, as the UK maintains its market leading position in Europe over the next 5 years.
The Internet advertising industry will be worth £14.4bn in 2021 accounting for 53% of all advertising spend, growing at 8.2% CAGR over the next 5 years and showing no signs of slowing down.
With 89m smartphones in the UK in 2021 advertisers continue to channel their spend online and especially in mobile. Mobile advertising will be one of the largest and fastest growing sectors over the next 5 years and will account for over half of all internet advertising spend in 2021.
With the UK set to almost double its data usage over the next 5 years. Video content continues to dominate how consumers use their smart phones, growing at 26% per annum over the next 5 years. How will this impact your content strategy?
Here is how we predict consumers will be using their data on smartphones in 2021.
As Brexit negotiations begin in earnest we predict the UK will maintain its market leading position in Europe in many sectors.
Here are some of the tipping points in the sector where consumer trends are reshaping the industry.
Will your content and distribution models be mobile first in 2019?