Trends
Video games no longer UK’s top entertainment medium
Despite strong revenue growth in 2023, the video game market’s pace lags behind video content, requiring innovation in VR, AR.
Headline
Despite strong revenue growth in 2023, the video game market’s pace lags behind video content, requiring innovation in VR, AR.
Context
OUR TAKE The surge in video content market reflects a shift in consumer preferences towards digital platforms, driven by convenience and diverse content. This trend is likely to continue with advancing technology. –Alaiya Ding, BTW reporter In 2023, the UK video content market grew by 10%, reaching £4.9 billion($6.27). Driven by subscription services like Netflix and Disney Plus, digital video has significantly altered consumer habits and is expected to continue growing.
Evidence
Pending intelligence enrichment.
Analysis
The ERA reports that the UK video content market saw a 10% revenue increase in 2023, reaching £4.9 billion（$6.27）. This growth is primarily driven by subscription services like Netflix , Disney Plus, and Apple TV, which make up 89% of the video market revenue. The widespread adoption of video subscription services has significantly altered consumer entertainment habits. Compared to traditional physical media, digital video is not only convenient but also offers a wider range of content. As more high-quality content becomes available, the video market’s growth trajectory is expected to continue in the coming years. Also read: Short videos have revolutionised the e-commerce industry, but is quality giving way to profit? Also read: Who is Edo Segal? CEO of TouchCast, game-changer in digital media Despite a strong performance with revenues of £4.74 billion in 2023, marking a 2.9% increase, the video game market’s growth rate has been outpaced by video content. Sales across PC, mobile, and console games remain substantial. However, with the rapid expansion of the video content market, the gaming industry must innovate to stay competitive. Emerging technologies like virtual reality (VR) and augmented reality (AR) present new growth opportunities. Additionally, game subscription services similar to Xbox Game Pass and PlayStation Now could become a significant trend, attracting both new and existing gamers.
Key Points
- UK video content market grew 10% to £4.9 billion in 2023, driven by subscription services like Netflix and Disney Plus.
- Despite strong revenue growth in 2023, the video game market’s pace lags behind video content, requiring innovation in VR, AR, and subscription services to remain competitive.
Actions
Pending intelligence enrichment.
