The 2018 UK entertainment and media outlook

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 next five years for the UK Entertainment and Media industry

In our 2018 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 £76 billion by 2022. Digital spend continues to drive the sector growing at 7% per year over this period.

The fastest growing sectors will be Virtual Reality (VR) and E-Sports, with the UK representing the largest markets in EMEA for both.

 

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Convergence, connection, & trust

The TMT sector has been experiencing convergence for a long time, but with Convergence 3.0 things are different.  The consumer is more connected than ever before, boundaries are blurring between traditional media segments and competition is hotting up horizontally and vertically as the media industry becomes the battle ground for internet, technology and telecoms companies. With mature segments looking for new sources of revenue and competition to own the “user experience” intensifies, securing and maintaining trust across multiple dimensions coupled with compelling content to engage and retain users will be key to forging a loyal and lucrative bond with your users.

The connected consumer in 2022

Consumers’ love of TV and video content on their terms continues to dominate their spending habits over the next 5 years.  Although overall growth is slow. As each new generation of consumers comes online we forecast mobile internet access will grow at 9% per annum over the next 5 years as the 5G roll out enhances the mobile experience.

We predict that in 2020 the UK Video games and eSports market will overtake the UK book sector and spend on VR will almost equal total magazine spend by 2022 as consumers continue to embrace video content and new unique, immersive experiences that VR and AI can offer. However the music industry which is arguably one of the furthest sectors along its digital transformation is bucking the trend as music streaming, growing at 19% CAGR overtakes live music for the first time in 2020.

 

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Trust me I’m in advertising

Trust in the advertising sector is a major issue in the UK, with consumers expected to trust big brands with their personal information and that the content they consume is accurate.  Players in the industry need to trust each other that metrics are collated for “real” users and platforms serve programmatic advertising alongside appropriate, relevant and complimentary content. 

We forecast that the UK internet advertising market will grow at 7% per annum accounting for approximately 1/3 of the Western European market. As technological advancements bring so many opportunities for advertisers, only those brands, content providers and media platforms that continuously demonstrate they can be trusted will retain loyal followers, and continue to grow advertising revenues.

Tipping points

Here are some of the tipping points in the sector where consumer trends are reshaping the industry.  

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Contact us

Mark Maitland
Media & Entertainment Leader, PwC United Kingdom
Tel: +44 7788 870900
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