PwC forecasts 3.1% growth in UK entertainment and media sector in next five years

According to PwC’s latest Global Entertainment & Media Outlook 2012-2016, the UK entertainment and media (E&M) market will grow by 3.1% compounded annually (CAGR - compound annual growth rate) from 2012 – 2016 to a value of £63 billion.

The report highlights that in 2011 the UK had the second largest E&M market in EMEA (Europe, the Middle East and Africa) at £54 billion, and goes on to forecast that the only segment of the UK market set again for double digit growth over the period will be internet advertising, at 12% CAGR.

The study reports that in 2011, the UK was the leading internet advertising territory in EMEA, at £4.96 billion, which will grow to £8.75billion in 2016, representing almost half of the UK’s total 2016 advertising market. 

Television advertising – broadcast and online/mobile TV together – is set to grow at 2.2% CAGR to £4.1 billion, and TV subscriptions are on course to grow by 4.9% CAGR to £6.8 billion in 2016. 

Phil Stokes, lead entertainment and media partner at PwC, said: “The various segments of the E&M sector are at different stages of digital development, but in all cases, digital is now embedded in day-to-day business. Consumers are demanding digital content that meets their needs – which are increasingly for on-demand entertainment, education and information on mobile devices – and companies have moved past initial experimentation and into a new normal”. 

The Outlook is an annual report that contains like-for-like, five year historical and forecast data for consumer/end-user and advertising spending across 13 media industry segments in 48 countries.

Report highlights:

Global spending on entertainment and media over the next five years is projected to rise from $1.6 trillion in 2011 to $2.1 trillion in 2016. However, the growth lags some way below the projected 6.6% compound annual increase in nominal GDP over the same period.

There were 13 countries in 2011 with total E&M spending (combined advertising and consumer/end-user revenues) above $25 billion, led by the US at $464 billion, Japan at $193 billion, China at $109 billion, and Germany at $99 billion.

China passed Germany in 2011 to become the third largest E&M market in the world. Of the leading countries, China and Brazil will be the fastest growing claims the report with projected compound annual increases of 12% and 10.6%, respectively. Brazil overtook South Korea in 2011 to move into ninth place, and during the next five years will pass Canada and Italy to become the seventh largest market.