The entertainment and media industry is on an upward trajectory, with the UK leading the way in Europe. This dynamic industry is expected to generate an impressive £100 billion in revenue by 2027, with an impressive compound annual growth rate (CAGR) of 4%.
Streaming video on demand (SVOD) is one of the biggest drivers of growth, set to overtake traditional TV subscriptions in the UK by 2025, generating £4.2 billion in revenue. Standalone virtual reality (VR) is also set to represent over 80% of the total installed base in 2027, with revenue forecast to reach £2 billion at 10% CAGR.
The increasing consumption of data is driving this growth, with annual data consumption predicted to rise from 158,000 petabytes in 2022 to 415,000 in 2027. The internet has had a significant impact on the industry, with internet access alone forecast to generate £16.7 billion in revenue this year. Mobile internet access revenue is set to overtake fixed broadband as the biggest contributor in 2023.
Thanks to the growth of the internet, internet advertising revenue is expected to reach £35.5 billion by 2027. Generative AI is driving growth in advertising and content creation, transforming the industry into a more engaging and immersive experience for consumers.
SVOD revenue in the UK is set to grow from £3.6 billion in 2023 to £4.7 billion by 2027, thanks to the increasing popularity of streaming services, social video platforms, and broadcast VOD services. These platforms will account for 36% of all data consumption in 2027.
TV advertising is also set for recovery with 4% growth in 2024 to £4.8 billion. Meanwhile, cinema is continuing its post-pandemic recovery growth over the next four years at 7% CAGR, with box office revenues expected to exceed pre-pandemic levels by 2025 at £1.3 billion.
The UK is not alone in experiencing growth in the entertainment and media industry. Germany is expected to reach £83.1 billion in 2023, while France is set to touch £54.6 billion in the same year.
The entertainment and media industry is evolving at a rapid pace, and the UK is at the forefront of this change. Streaming video on demand is becoming increasingly popular, and is set to overtake traditional TV subscriptions in the UK by 2025. Standalone virtual reality is also set to represent over 80% of the total installed base in 2027. This change is driven by the increasing consumption of data, with the internet having a significant impact on the industry.
Generative AI is driving growth in advertising and content creation, transforming the industry into a more immersive experience for consumers. SVOD revenue is set to continue growing in the UK, reaching £4.7 billion by 2027, with social video platforms, broadcast VOD services, and streaming services accounting for 36% of all data consumption in 2027.
TV advertising is also set for recovery, while cinema continues its post-pandemic recovery growth. The UK is not alone in experiencing growth in the entertainment and media industry, with Germany and France also seeing significant growth.
The entertainment and media industry is set for significant growth in the coming years, with the UK leading the way. The rise of SVOD, standalone VR, and internet access is transforming the way we consume media and entertainment. With generative AI driving growth in advertising and content creation, the industry is set to continue its upward trajectory for years to come. Consumers can expect to enjoy even more engaging and immersive entertainment experiences as this industry continues to evolve.