A record £7.2 billion was spent in 2017 on entertainment, as digital streaming boosted sales of music, video and computer games. The 8.8 per cent increase means that the entertainment industry’s growth rate was four-times higher than the rest of the UK economy.
According to statistics published by the UK’s Entertainment Retailers Association (REA), £1.2 billion was spent by consumers on recorded music in the UK in 2017, an increase of over £100 million when compared with 2016, while digital video revenues from Netflix and Amazon Prime subscriptions, as well as films and shows viewed via Sky, Google and Apple, soared by 22.2 per cent to £1.9 billion.
Subscription streaming services was the leading revenue driver, adding £577 million to the British music business last year, up 41.9 per cent year-on-year.
Combined retail spending on CD and vinyl fell by just 3.4 per cent to £459.4 million, but physical music formats held up well in 2017.
An increase in console games software and the popular FIFA 18 game boosted spending on computer games, leading to a growth of 9.6 per cent and reaching a value of £3.35 billion.
Commenting on the figures ERA CEO Kim Bayley says: “This is an historic result which demonstrates the benefits of innovation and investment in new technology.
“New digital services are bringing ever increasing numbers of the UK population back to entertainment with 24/7 access to the music, video and games they want.
“In the past the growth of the market tended to be dependent on the release schedules of games publishers, film studios and record labels. Now we are seeing a market which is also driven by digital platforms and technologies.”
Geoff Taylor, Chief Executive of the BPI, the representative body for UK record labels, does however warn that Brexit could put unnecessary pressure on the UK music industry, calling on the Government to “ensure our musicians are able to tour freely even after we leave the EU.”
Beavis Morgan – business advisers to the UK entertainment industry
Our experts at Beavis Morgan work regularly with businesses and individuals in the entertainment, media and creative industries, including artists and musicians, assisting with their business plans, establishing the market for their product through research, analysing their financial requirements both now and for the future, and putting processes in place to enhance cashflow, leverage tax smart strategies, minimise risk and drive financial success and business performance.
To find out more, contact Steve Govey.