The Entertainment and Media (E&M) sector will be worth £76bn by 2021, according to PwC’s latest Global Entertainment & Media (E&M) Outlook 2018-2022.
Overall, the market is predicted to grow by £8bn over the next four years, making the UK the second largest market in Europe, the Middle East and Africa (EMEA), after Germany.
Mark Maitland, UK head of E&M at PwC, said: “The UK’s entertainment and media sector is forecast to grow at a healthy rate over the next four years with some of the largest and fastest growing markets in digital and technology, reflecting its location as a place for innovation.
“To stay ahead of the curve, entertainment and media companies must revisit how they envision their business generates revenues and how they build and retain trust. Given the pace and scale of change underway, speed is key.
“Consumers are rejecting the one-size fits all content experiences they were once fed. As a result, it’s vital for companies to use digital delivery, data analytics and AI to personalise and tailor their offerings to provide a unique experience.”
Consumer spending on internet access will bring in the most revenue over the forecast period rising from £13bn this year to £16bn by 2022, a 6% CAGR. Last year, for the first time, consumers spent more on mobile internet access than fixed broadband access. PwC now expects smartphone ownership in the UK to hit more than 70 million and, as a result, mobile internet access is forecast to account for more than half of overall internet access revenue in four years’ time.
Mark Maitland commented: “Data consumption in the UK will grow by 22% year-on-year till 2022 and we expect the UK’s internet access revenue to overtake France in 2021 to become the biggest market in Western Europe.
“Growth will be driven by better connected homes and businesses and increased network coverage and capacity for mobile users, who are becoming more attracted to low-cost SIM only deals from operators.
“Mobile-first consumption is increasingly the new normal and this continues to define the direction of advertising revenues, as mobile platforms become important distribution channels for media - especially through video, which is one of the fastest growing sub-segments. Although, over the next four years, companies will be demanding greater assurances from content providers on where ads are placed online, especially in relation to inappropriate and offensive material which is pushing trust up their agenda and consumers will be seeking more transparency on how their data is being used.”
The UK’s virtual reality sector remains the fastest growing E&M segment. With more than 7.8m VR headsets forecast to be cumulatively sold in the UK by 2022, PwC expects the virtual reality industry will be worth £1.2bn.
E-sports is also forecast for double-digit growth of 21% CAGR over the next four years with total revenue growing from £23m in 2018 to £45m.
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