PwC Predicts U.K. Entertainment and Media Market Will Grow to $155 Billion by 2028

As the U.K.’s entertainment and media (E&M) market approaches a pivotal milestone, it is set to surpass Germany and become Europe’s largest by 2025, according to PwC’s Global Entertainment & Media Outlook 2024-2028. This projection reflects a shift in the industry’s landscape, driven by robust growth in both streaming services and cinema.

The report forecasts that U.K. E&M revenue will exceed £100 billion ($128 billion) this year, with expectations to reach £121 billion ($155 billion) by 2028, growing at a 4% compound annual growth rate. Despite this promising outlook, the streaming sector, while still leading Western Europe and ranking third globally, faces a maturing market.

Subscription revenues are predicted to climb from £6.5 billion in 2024 to £8.3 billion by 2028, although the growth rate is slowing. Streaming platforms are responding by diversifying revenue streams, with ad-supported plans becoming more prevalent. PwC’s Ben Bird observed that platforms are leveraging content rights and original productions to maintain subscriber interest, prompting consumers to pass multiple services.

The cinema industry, meanwhile, is experiencing a strong rebound, with revenue expected to grow at a 6% annual rate over the next four years. Cinema admissions are projected to rise by 5% annually, driven by blockbuster hits like “Barbie” and “Oppenheimer.” The sector is set to surpass pre-COVID box office spend levels by 2027, reaching £1.3 billion by 2028.

Internet advertising remains a key growth area, expected to increase from £32 billion in 2024 to £44 billion by 2028, with paid search dominating. Additionally, the U.K. gaming market will continue to lead Europe, growing from £7.4 billion in 2024 to £8.4 billion in 2028. Social and casual gaming is projected to contribute remarkably to this revenue.

Live music is also on an upward trajectory, with ticket sales predicted to rise from £1.75 billion in 2024 to £1.9 billion by 2028. By that year, live music is anticipated to represent 31% of total music, radio, and podcast revenue.

Mary Shelton Rose, PwC’s partner and U.K. technology, media, and telecoms leader, highlighted the need for the U.K. entertainment and media industry to embrace emerging technologies and adapt its business models to fully capitalize on these growth opportunities.