Streaming builds momentum as UK video market steadies at £11.4 billion in 2025

The UK video entertainment market is holding its course, with total consumer spend expected to rise 2% in 2025 to £11.4 billion. That’s according to Futuresource Consulting’s latest Video Insights UK report, which highlights subscription video-on-demand (SVoD) as the powerhouse of growth, alongside a stronger year for box office and signs of stabilisation in transactional video.

“We’re halfway through the decade, and we’re seeing a market continuing to climb,” says James Duvall, Principal Analyst at Futuresource Consulting. “SVoD continues to expand, though not in isolation, and the interplay with Pay-TV, the recovery of cinema, and renewed loyalty in transactional all tell a story of resilience and evolution.”

SVoD expands as Pay-TV holds share

Futuresource expects SVoD spending to climb 6% in 2025, accounting for around 40% of total market value. Subscription stacking remains common, with UK households holding more than 52 million subscriptions, an increase of 12 million since 2020. The shift is also being fuelled by price adjustments and wider tiering, as services target multiple audience segments through premium and ad-supported packages.

Yet despite streaming’s momentum, Pay-TV continues to command the single largest share of spend, at 45% in 2025. Futuresource Consulting’s forecast modelling shows that SVoD will overtake Pay-TV revenues by 2029, but for now, legacy platforms retain their weight thanks to entrenched consumer habits and the lure of live sport.

Box office on track for £1 billion

After a challenging 2024, when strike-related delays cut into the release slate, UK cinemas are bouncing back. By the end of 2025, box office revenues are expected to surpass £1 billion for the first time since Covid, supported by major franchises, new IP and a diverse mix of genres drawing audiences into theatres.

Transactional finds its footing

The transactional market, combining digital and physical formats, is beginning to stabilise. In digital, electronic sell-through (EST) accounts for nearly two-thirds of spend, with premium formats to lift average transaction values.

Meanwhile, Blu-ray continues to underpin the physical sector, representing nearly 60% of packaged sales. Although overall volumes remain in long-term decline, a loyal collector base is sustaining physical formats and slowing the rate of erosion.

A strong long-term outlook

Looking ahead, Futuresource expects the UK video entertainment market to grow at a modest CAGR of just over 1.2% between 2025 and 2029. SVoD will continue to power the expansion, but box office and transactional will also play meaningful roles, particularly as audiences embrace greater choice across formats.

“The UK market is no longer defined by a simple transition from Pay-TV to streaming,” says Duvall. “It’s all about striking a balance, between subscription and ad-funded, between streaming and cinema, between digital and physical. Over the next few years, we expect that interplay to become a structural feature and shape the growth paths of every segment in this industry.”

The new Video Insights UK report delivers detailed analysis of consumer spend, service performance and market forecasts across SVoD, Pay-TV, box office, transactional video and physical media, offering essential intelligence for studios, platforms, distributors and vendors. To learn more or to make a purchase, please contact Imad at imad.sarwar@futuresource-hq.com or book a meeting directly here.

About Futuresource Consulting

Futuresource Consulting is a leading research and consulting firm, providing in-depth analysis and strategic insights for the technology, media and entertainment industries. Established in the 1980s, Futuresource helps global brands understand consumer trends, innovate effectively, and navigate market change.

Press Contact: Nicola Finn, Marketing Manager, Futuresource Consulting, nicola.finn@futuresource-hq.com