The global entertainment and media industry is forecast to grow from being worth $2.3 trillion in 2022 to $2.8 trillion in 2027, although the recent growth rate is expected to decline. In the United Kingdom, revenue for online video subscriptions is expected to overtake that from traditional television subscriptions in 2025.
The annual PwC Global Entertainment and Media Outlook for 2023-2027 paints a picture of an industry that is becoming more digital and increasingly dominated by advertising, which is projected to be worth $1 trillion in 2027.
Macroeconomic pressures, geopolitical instability and inflationary challenges hit consumers hard in 2022. Consumer spending on entertainment and media products and services is expected to grow at a compound annual growth rate of just 2.4% over five years to 2027.
The United Kingdom is forecast to maintain its position as the leading entertainment and media market in Europe over the next four years, reaching £85 billion in 2023 and £100 billion in 2027.
“2022 was a challenging year for the UK entertainment and media industry as the economy struggled to return to normality,” said Mary Shelton Rose, partner and United Kingdom Technology, Media and Telecoms Leader at PwC. “In the midst of continued change and disruption, the industry reassessed its strategies and refocused on core operations.”
Revenue from online video subscriptions is forecast to grow from £3.6 billion in 2023 to $4.7 billion in 2027. In 2025 it is forecast to overtake that from traditional television subscriptions.
Television advertising remains a significant medium. It is expected to decline by 3% in 2023 as budgets have tightened but then recover with 4% growth in 2024 to £3.8 billion. However, internet advertising revenue of £27.5 billion in 2023 is expected to reach £35 billion in 2027, representing a third of total entertainment and media revenue.
The PwC Global Entertainment & Media Outlook, now in its 24th year, provides five-year historical and five-year forecast data for 13 industry segments across 53 territories. It can be purchased online at the PwC web site.