UK streaming revenue will nearly double between 2018 and 2022, according to a new forecast from PwC.
The analyst firm’s latest Global Entertainment and Media Outlook 2018-2022 finds digital music is a major ‘tipping point’ for the wider entertainment industry.
Revenues from streaming will nearly double from the £779m forecast for 2018 to £1.3bn by 2022, it added.
Overall, the entertainment and media industry is set to grow by £8bn over the next four years to be worth £76bn in 2022.
PwC predicts the sector will become the second largest in Europe, the Middle East and Africa, after Germany.
Looking at the biggest revenue generators, consumer spending on internet access will bring in the most revenue over the forecast period, rising from £13bn this year to £16bn by 2022.
Last year, for the first time, consumers spent more on mobile internet access than fixed broadband access.
PwC now expects smartphone ownership in the UK to hit more than 70 million and, as a result, mobile internet access is forecast to account for more than half of overall internet access revenue in four years’ time.
Mark Maitland, UK head of Entertainment and Media at PwC, said: ‘The UK’s entertainment and media sector is forecast to grow at a healthy rate over the next four years with some of the largest and fastest growing markets in digital and technology, reflecting its location as a place for innovation.
‘To stay ahead of the curve, entertainment and media companies must revisit how they envision their business generates revenues and how they build and retain trust. Given the pace and scale of change underway, speed is key.
‘Consumers are rejecting the one-size fits all content experiences they were once fed. As a result, it’s vital for companies to use digital delivery, data analytics and AI to personalise and tailor their offerings to provide a unique experience.’