The UK entertainment and media (E&M) market will experience a cumulative 7% decline in revenue from 2008 to 2010, from $92 billion to $85 billion, according to a new PricewaterhouseCoopers report.
A change in consumer spending behaviour will push the market to its lowest revenue figures since 2005, said PwC. However from this point consumer spend will drive an increase to $98 billion in 2013, leaving the UK snapping at the heels of the market leaders, Germany, who will in turn experience an 8.6% rise from 2010 to 2013 ($90 billion to $99 billion).
Phil Stokes, head of entertainment & media, PricewaterhouseCoopers LLP, said: “E&M growth slowed to 1.5% in the UK in 2008 and we expect a cumulative 7.2% decline over the next two years as the economy continues to struggle.
“Although we expect a rebound beginning in 2010, internet access, internet advertising, TV subscriptions and license fees, filmed entertainment and video games will be the only segments that will be larger in 2013 than in 2008.”
The UK internet access market (wired and mobile) will increase at a compound annual growth rate (CAGR) of 7% from 2009 to 2013, an overall rise of 40% ($10.3 billion to $14.4 billion spend).
Alongside leading European countries such as Germany and France, the UK is investing heavily into internet access, focussing on rolling out high speed broadband, which is reflected in a predicted 37% increase in penetration across the country from 2009 to 2013, said PwC.
A report from Ofcom published earlier this month found that one in five UK adults who do not have the internet at home are likely to sign up in the next six months (see 1 in 5 adults without internet access likely to sign up in next six months).
Recent comScore data revealed that the UK had the second largest online audience in Europe in April, with 36.8 million unique visitors (see UK online audience hits 36.8m unique users in April).
