Tuesday, July 13, 2021 10:10 a.m.
Britain’s entertainment and media industry is set to become the biggest in Western Europe by 2025 after a rapid rebound in the aftermath of the pandemic.
The sector suffered a major setback due to Covid, with total revenues down 5% in 2020 due to the impact of closures on cinema, live music, events and advertising.
But growth is expected to rebound to 9% this year, followed by a compound annual growth rate of 5% over the next four years – above the global average, according to a new PwC report.
By 2025, the UK will overtake Germany as Western Europe’s largest entertainment and media market in terms of revenue.
With a projected value of £88 billion, it will be the world’s fourth largest market behind the US, China and Japan.
The forecast highlights the entertainment sector’s strong recovery after a year of severe disruption for many businesses.
But with changes in consumer behavior and increased adoption of digital platforms, PwC warned there would be a lasting impact in some sectors.
According to the report, total UK cinema revenue is unlikely to return to pre-pandemic levels, while the recovery in the business-to-business events sector is expected to take several years.
In contrast, spending on over-the-top streaming services is expected to grow 14% this year, ahead of global growth, and reach a compound annual growth rate of 8% over the next four years.
Online advertising, which has benefited from the pandemic, should continue its rapid pace of growth.
“UK consumers’ rapid migration to digital behaviors in the pandemic is now embedded in their daily lives, helping to support overall entertainment and media growth for the next five years,” said Mark Maitland, UK head of entertainment and media at PwC.
“As companies strive to meet changing consumer needs with new products, services and experiences, the E&M industry will become more ubiquitous, more immersive and more diverse”
