UK’s entertainment and media value to reach £76bn by 2022, streaming value continues to rise

The UK’s entertainment and media (E&M) sector will be worth £76 billion (A$133.2 billion) by 2022.

This is up from £68 billion  ($119.1 billion) this year, according to accountancy giant PwC’s latest Global Entertainment & Media (E&M) Outlook 2018-2022.

The streaming sector, which represents over 50% of sales in that territory, is forecast to be worth  £1.4 billion ($2.4 billion) by then, and will overtake spending on live music tickets.

Total music, radio and podcast revenue will grow 3.2% over the period from £4.1 billion ($7.1 billion) in 2017 to £4.8 billion ($8.4 billion).

“The growth in music streaming shows no signs of slowing down,” said Mark Maitland, PwC’s head of entertainment and media.

“We forecast revenues to increase by 19% year-on-year until 2022, as consumers move away from music ownership through downloads to music access via streaming.

“Over this same period, ticket sales for live music will remain largely flat, growing at 0.3% year-on-year and we forecast revenue from streaming to overtake live ticket sales in 2020.”

Other key growth areas include internet access spend (from £13 billion or $22.7 billion this year to £16 billion or $28 billion) and virtual reality (£1.2 billion pr $2.1 billion in four years)., both set to play a key role in the future of the music business.

Other figures put the spotlight on the UK as a creative place.

PwC predicts advertising revenue in entertainment and media will account for a quarter of total E & M revenue by 2022, with digital spend continuing to dominate growth.

Internet advertising spend will grow from £10.5 billion ($18.3 billion) in 2018 to £14.3 billion ($25 billion) by 2022.

Digital game purchases for consoles should reach £725 million ($1.2 billion) by 2022 overtaking physical game purchases for consoles for the first time, which is seeing revenue fall at 5% a year.

Total video games revenue (£5.1 billion or $8.9 billion)) is set to overtake total spend on books (£4.9 billion or $8.5 billion) in 2020.

UK consumers will remain the biggest spenders on over-the-top video (OTT), streaming services such as Netflix and Amazon Prime than any country in Europe –  £1.9 billion ($3.2 billion) by 2022.

E-sports is also forecast for double-digit growth of 21% CAGR over the next four years with total revenue growing from £23 million ($44 million) in 2018 to £45 million ($78.8 million).

Observes Maitland, “The UK’s entertainment and media sector is forecast to grow at a healthy rate over the next four years with some of the largest and fastest growing markets in digital and technology, reflecting its location as a place for innovation.

“To stay ahead of the curve, entertainment and media companies must revisit how they envision their business generates revenues and how they build and retain trust. Given the pace and scale of change underway, speed is key.

“Consumers are rejecting the one-size fits all content experiences they were once fed. As a result, it’s vital for companies to use digital delivery, data analytics and AI to personalise and tailor their offerings to provide a unique experience.”