UK entertainment and media market worth 64BN by 2018
Joseph O'Halloran
| 04 June 2014
The 15th edition of PwC's Global Entertainment and Media Outlook has painted a very a rosy picture for the UK's creative industries.

According to PwC's report, the UK entertainment and media (E&M) market is expected to grow by 3.1% compounded annually (CAGR) from 2013 to 2018 to a value of 64 billion in 2018.

Total E&M spend on digital (excluding spend on Internet access) is forecast to grow at a 10.9% compound annual rate between 2013 and 2018 and account for 34% of the UK's entertainment and media spending growth more than one in every three pounds. In 2013, the UK had the second largest E&M market in EMEA at 58.6 billion, behind Germany, and it will maintain this position to 2018. The fastest growing areas will be Internet advertising, Internet access, out of home advertising, video games and TV advertising.

The report found that TV advertising in the UK was worth 3.7 billon in 2013 with revenues forecast to grow by a compound annual growth rate of 3.5% to reach 4.3 billion in 2018.

Video Internet advertising was revealed as the fastest growing of the sector, with revenue nearly tripling between 2013 and 2018, to reach an expected 717 million, a compound annual growth rate of 23.9%. But this will still only make it the fifth-largest segment of Internet advertising, with just 7% of total revenue.

Commenting on the findings, Phil Stokes, entertainment and media lead partner at PwC, said: "The entertainment and media industry is at the forefront of the digital revolution, because so many of its products and services can already be delivered in digital form. It may not be long before digital revenues from print, film, publishing and music overtake physical revenues in some markets. Media companies don't need a digital strategy anymore; they need a business strategy, and a business model, which is fit for the digital age."