UK Entertainment & Media Outlook: £121bn boom by 2028

Discover how the UK’s creative sectors will evolve as the BAND team analyses PwC’s latest E&M Outlook.

Last week, PwC published its Entertainment & Media (E&M) Outlook up to 2028. With the UK E&M market set to exceed £100bn in 2024, with a trajectory to grow to £121bn by 2028, the BAND team have analysed this valuable report and summarised the key areas that will impact SME UK creative businesses. 

Streaming Services  
With recent personal household financial pressures, it is no surprise that streaming platforms are set to explore alternative models to drive growth. Although the uptake of streaming services has continued to grow throughout 2024, the growth rate has steadily slowed. Therefore, platforms are exploring alternative ways to monetise subscribers by introducing ad-based subscription tiers and measures to limit password sharing. So, how will this affect the growth of streaming services?

The new monetisation tactics will help expand the sector but at a much slower rate than the initial streaming uptake. So, streaming platforms will look towards new and highly profitable advertising income streams. The report suggests this will account for 43% of over-the-top video revenues in 2028. 

Overall, this means the UK market is set to grow to £8.3bn by 2028, with continued support from ad-supported plans, live sports offerings and strategic consolidation. 

Cinema and Live Music  
The real-life experience sector is having a strong post-pandemic resurgence. Cinema and live music ticket sales accounted for 39% of the global increase in consumer spending on E&M in 2023. Even more positively, global cinema revenues are expected to exceed pre-pandemic levels by 2026. 

Closer to home, UK cinema revenue is expected to rebound to pre-COVID levels, growing at 6% year-on-year through to 2028. Even better, live music revenue is predicted to increase to a whopping £2.5bn by 2028. 

This offers optimism to those in the UK TV, film and music sectors, showcasing the eagerness for consumers to engage and spend in these in-person events — a testament to the resilience of these entertainment experiences. 

Internet Advertising  
It is no secret that driving revenue growth by selling E&M directly to consumers is becoming more challenging: consumer spending is measured as the smallest and slowest growing category in the E&M sector. 

Internet advertising is expected to make up 77% of total E&M industry growth (excluding internet access) globally, and 85% of total UK ad spend over the next five years. This will drive the critical shift towards more sophisticated and data-driven advertising models. With well-documented uncertainties facing advertising, like limited ad budgets, high inflation and unclear policy backdrops, it is interesting that internet advertising grew by 10% in 2023 and is set to record the previously mentioned 77% of total ad spend by 2028. 

This UK growth is driven by the rapid expansion of retail media and video advertising as the UK is the digitally mature ad market in Western Europe. All of this growth is set to help internet advertising grow to a staggering £44bn by 2028. 

UK Gaming  
In 2023, global video game revenues (including e-sports) reached £183bn, one of the fastest-growing segments in the E&M sector. This is all despite significant post-pandemic employment reductions across the industry. 

Even more impressively, the UK gaming market is set to maintain its status as the largest and most well-established in Europe, with revenues forecast to grow to £8.4bn (up from £7bn) by 2028. 

To keep up with the increasing demand for greater quality and accessibility to gaming, continued investment in gaming technologies is essential. This will ultimately open doors to a broader demographic of users, improve accessibility through smartphone technology and boost collaboration. 

Conclusion
As we approach 2028, the UK’s entertainment and media landscape is poised for significant growth across various sectors. From streaming and live experiences to internet advertising and gaming, the potential for innovation and profitability remains high. Don’t hesitate to contact the BAND team for more detailed insights and strategic guidance.