The surging demand for video streaming services will drive a £10bn growth in the UK’s entertainment and media sector over the next five years, according to a report published today.
The booming industry is set to be worth £80bn in 2023, up from the £70bn projected for this year, according to professional services firm PwC.
The growing range of on-demand video platforms will be a key driver of growth, the report stated, as broadcasters and tech giants line up to launch their own streaming services to rival Netflix.
Subscription video-on-demand currently pulls in revenue of £900m, but new services such as Britbox, the joint venture between ITV and the BBC, will boost this figure to £1.3bn by 2023.
The UK’s nascent 5G network is expected to fuel this growth, with consumers forecast to use more internet data than any other country in western Europe over the next four years.
“The industry is underpinned by consumer demand for new, high quality content, that is accessible and highly personalisable,” said Mark Maitland, UK head of entertainment and media at PwC.
“The UK remains a leading market in terms of talent, reputation and innovation, and has seen significant levels of financial investment as a result.”
The report revealed internet advertising will account for a quarter of all revenue in the entertainment and media sector by 2023, generating roughly £20bn.
This will be boosted by the continued popularity of mobile formats, which are expected to make up nearly three-quarters of all internet advertising in five years’ time.
Overall, the UK’s entertainment and media sector will grow at a pace of 3.5 per cent per year, and will be second only to Germany in western Europe for total revenue.