UK creative sector cashes in on digitisation
Joseph O'Halloran | 25-03-2013
Digitisation has been “surprisingly” positive for the creative sector in the UK, very much including the TV sector, according to a new study by Booz & Company.
Commissioned by Google, "The Digital Future of Creative UK" study found that despite what it called significant structural changes, the revenues of the five major industries — book publishing, press publishing, film & TV, gaming and music — have increased to more than £30 billion since 2001, translating into a stable yearly growth rate of approximately 1%. During this period revenues from these digital businesses grew by more than 10% per year to almost £9 billion.
Fundamentally the survey found that the Internet in particular has driven media consumption of Europeans to record levels, finding that on average, Britons spend almost five hours per day with media products and services, two hours and 20 minutes of which dedicated to watching TV.
Commensurate with this increased engagement has been significant improvements in monetisation of content. European consumers were found to spend on average more than three pence per hour on media consumed online, representing an increase of almost 140% since 2003. The average monetisation level per consumer was 15 pence per hour for film and television content and roughly 20 pence for print products.
For the European market, the study comes to similar conclusions revealing total revenue of the focus industries increasing by £26 billion since 2001 to almost £175 billion. A quarter (£43 billion) of this revenue was attributed to digital businesses with a yearly growth rate of 11%, slightly more dynamic, said Booz, than the respective UK trend. However it noted that with a total daily media consumption of only slightly more than four hours and an Internet share of 1.3 hours, the European creative sector still has some way to go to fully catch up in the digital environment.
"Consumers and creators are the great beneficiaries of digitisation in the creative sector," says Hannes Gmelin, principal and digital media expert from Booz. "But companies in the creative industries can also thrive as long as they are able to create relevant consumer experiences and focus on the two growth areas digital and consumer-paid content."