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.”
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 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.
“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.
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