The UK entertainment and media market is expected to increase by a compound annual growth rate (CAGR) of 3.1% between 2013 and 2018 to reach £64 billion, according to a report from PwC.
In 2013, the UK had the second largest entertainment and media market in EMEA at £58.6 billion, behind Germany, and is expected to maintain this position through to 2018, with growth driven by the internet and “consumers’ love of new technology,” particularly mobile technology and applications powered by analytics and the cloud.
Internet advertising
The UK is Europe’s largest internet advertising market and was worth £6.1 billion in 2013 and is expected to increase to £9.6 billion in 2018 – a CAGR of 9.3%.
Paid search continues to dominate the sector in the UK, with revenues set to reach over £4 billion in 2018, while video internet advertising is the fastest growing, with revenue expected to triple between 2013 and 2018 to £717 million.
Internet advertising earned more from mobile than from classifieds for the first time in 2013, and will also overtake desktop display in 2014.
Video games
The market for video games in the UK is expected to reach £4.1 billion in 2018, growing by a CAGR of 5.1%.
By 2018, total console games revenue will be £2.1 billion – 51% of total video games revenue – with digital console games expected to overtake online games revenue this year, and mobile games revenue in 2017.
Online gaming will grow at a CAGR of 5.7% to reach revenues of £719 million by 2018, with mobile games revenue expected to increase at a CAGR of 6.9% to £857 million over the same period.
Ebooks
In 2013 Ebooks accounted for 19% of all book revenue and this is expected to rise to 41% by 2018 – overtaking print copies.
“Forget audience fragmentation. From a consumer’s angle, it’s about ubiquity – a consistent feel across multiple devices,” said Phil Stokes, entertainment and media lead partner at PwC.
“The entertainment and media industry is at the forefront of the digital revolution, because so many of its products and services can already be delivered in digital form.
“It may not be long before digital revenues from print, film, publishing and music overtake physical revenues in some markets. Media companies don’t need a digital strategy anymore; they need a business strategy, and a business model, which is fit for the digital age.”
