A new report has predicted that the UK’s entertainment and media sector is likely to grow to £76 billion a year by 2020.
The Entertainment & Media Outlook report forecast that industries related to these sectors will continue to grow year-on-year in the UK, including higher growth in newer areas such as virtual reality (VR) and online streaming.
In fact, the UK’s booming VR revolution is anticipated to reach a value of £1.2 billion by 2020, as the number of headsets in use in Britain exceeds 16 million.
By the end of this year alone the entire economic output from the entertainment and media sectors in the UK is expected to hit £68 billion – making it a key contributor to the nation’s financial health.
The country is already the leading player in the European video games market, with the e-sports segment alone expected to reach a value of £48 million during this period.
However, the nation’s music industry is facing pressure from the growing number of streaming services, which is limiting physical sales and reducing earnings for artists.
The global music streaming economy is now worth $10 billion, more than three times the value of downloads and far outpacing physical sales.
In the UK streaming brings in £779 million – a figure which is expected to grow to £1.4 billion in the next four years.
In order to compete, the report says that music companies will be required to emulate existing services or innovate and create new ways of selling their products in future.
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