The UKs entertainment and media sector is predicted to grow by £8bn over the next four years, making the UK the second largest market in Europe, the Middle East and Africa (EMEA).
The growth will take the sector to a total of £76bn, according to PwCs latest global outlook report.
Stand out sectors include virtual reality (VR), which is the UKs fastest growing E&M sector at 34 per cent annually, and e-sports. The UK is now the largest video games market in Europe, with more than 7.8m VR headsets forecast to be cumulatively sold in the UK by 2022. Both VR and e-sports revenues are set to bump up to £1.2bn and £48m respectively.
Digital game purchases, meaning games bought from a console App Store rather than in physical retail, is forecast to reach £721m within the next four years and overtake physical game spend for the first time.
PwCs UK head of enterntainment and media Mark Maitland commented:
We see the UKs entertainment and media sectors making a strong contribution to economic growth over the next four years.
The main drivers of growth will be the technology and digital companies, which are redefining the competitive playing field to the point where the borders that once separated media, technology and telecoms are dissolving to create a third revolution of convergence.
Meanwhile the UKs biggest revenue generators in E&M will be consumer spending on internet access, set to rise from £13.7bn this year to £17bn by 2022, and advertising spend which will account for a quarter of the sectors total revenue at around £19bn. This includes internet advertising, both digital and physical out-of-home advertising like billboard displays, and for the first time, podcast advertising, which is forecast to grow by 38 per cent annually.
Maitland continued: “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, its vital for companies to use digital delivery, data analytics and AI to personalise and tailor their offerings to provide a unique experience.”