UK Entertainment and Media Market Set to Become Europe's Largest

The UK is forecast to have the largest entertainment and media market in Europe overtaking Germany from next year, according to PwC’s latest Global Entertainment & Media (E&M) Outlook 2024-2028.

UK E&M revenue is expected to break the £100bn barrier this year before growing to £121bn by 2028 at a compound annual growth rate (CAGR) of 4%.

PwC reported that advertising makes up an outsized share of the E&M market in the UK, representing 39% of sector revenues (in 2024) vs. 29% across Western Europe.

The UK ad market is also the most digitally mature in Western Europe, with internet advertising representing 80% of total advertising revenues compared to 66% across the region. The UK digital advertising market is forecast to grow from £32bn in 2024 to £44bn in 2028, a CAGR of 8% which is amongst the highest in the region.

Meanwhile, the service sector (internet access) is forecast to generate £32bn by 2028 aided by significant growth in 5G subscriptions.

UK subscriptions to OTT video services are projected to increase to £8.3 billion by 2028 from £6.5 billion in 2024, reflecting a 6% compound annual growth rate (CAGR). This growth will be driven by efforts to curb password sharing and the introduction of ad-supported tiers. By 2028, advertising is expected to make up 30% of UK OTT streaming revenues, up from 24% in 2024.

The UK is forecasted to maintain its position as Europe's largest and most established gaming market, with total video games and esports revenue anticipated to grow from £7.4 billion in 2024 to £8.4 billion by 2028, at a CAGR of 3%.

Cinema revenue is expected to continue growing over the next four years at a CAGR of 6%, with box office spending projected to exceed pre-Covid levels by 2027 and reach £1.3 billion by the end of the forecast period.

Live music ticket sales are anticipated to rise from £1.75 billion in 2024 to £1.9 billion by 2028, driven by music festivals and global tours, reflecting a CAGR of 1.9%. By 2028, live music will account for 31% of total revenue from music, radio, and podcasts, which is forecast to reach £6.1 billion.

Mary Shelton Rose, Partner and UK Technology, Media and Telecoms Leader at PwC, said: “Our E&M industry is one of the UK’s strongest growth sectors. To stay ahead we must continue investing in talent and embracing digital transformation which will support further revenue growth.”