UK Video Entertainment Market to Top £11 Billion Amid Consumer Uncertainty
The UK’s overall video entertainment sector is on track to deliver a strong performance in 2022, despite cost of living concerns and economic uncertainty. According to a new market report from Futuresource Consulting, consumer spend is expected to show robust growth, to end the year on £11 billion.
“2021 delivered a hefty slice of growth for the overall video entertainment market in the UK, and 2022 is building on those foundations,” says David Sidebottom, Principal Consultant, Futuresource Consulting. “We’re looking at one of the most dynamic video entertainment markets in the world. There’s a wide assortment of services, content available across a range of business models, an ever-expanding free TV landscape driven by both local broadcasters and international players, and a booming local production industry.”
Box Office Draws the Crowds
Close to half of the predicted annual increase is due to the recovery in Box Office, which Futuresource expects will break the £1 billion level achieved before the pandemic. This is down to the combination of a bumper release slate from major franchises, and the continued dissipation of Covid-induced nervousness.
SVoD and Transactional Video on the Rise Despite Pressures
SVoD will also show continued strength, with double-digit growth despite pressures on consumer wallets and the high-profile slowdown in uptake of major services. Increased subscription prices will help drive the uptick, and, by 2026, Futuresource expects SVoD to almost match consumer spend on Pay TV.
The transactional digital video sector is expected to grow too, as new releases return. Yet the changing dynamics of the wider video viewing landscape, along with consumer spending concerns, means that the outlook for transactional digital video is likely one of steady growth.
A Market in the Balance
“The UK home entertainment market is a resilient beast,” says Sidebottom, “yet the cost of living crisis is dominating headlines. Inflation is rearing its head, with soaring energy prices significantly impacting the disposable income of many consumers. In among all the action, we’re going to see people evaluate their spending habits, but market growth will continue to prevail throughout our forecast period.”
The impact of the cost of living crisis on entertainment spending in 2022 will also be highlighted in the upcoming edition of Futuresource Consulting’s Living With Digital consumer survey, covering the UK and 11 other countries.
For further information or to purchase the UK Video Insights report from Futuresource Consulting, please contact leon.morris@futuresource-hq.com
About the author
David is a Principal Analyst – Media and Entertainment. David has over 20 years’ experience in a research and consultancy environment and is closely involved in researching, analysing and consulting on key content industry and consumer technology developments worldwide, with a particular focus on the evolution of digital business models in the TV, video and music industry. David works with a wide variety of high profile Futuresource clients across the content ecosystem including studios, broadcasters, technology companies, hardware vendors, service providers and industry associations. He also directs Futuresource’s long-running global consumer panel ‘Living with Digital’.
Latest Content & Entertainment Insights