- 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.
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.
Surge in video content market
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.
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Current status and future of video games
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.
Steady recovery of the music market
In 2023, the UK music market generated £2.2 billion in revenue, a 9.6% year-on-year increase, approaching its best year ever in 2001. The main drivers of this growth are digital music downloads and streaming services. Platforms like Spotify and Apple Music have transformed the way music is consumed. While physical album sales persist, their market share continues to decline. The future of the music industry looks promising as more artists and record labels embrace digital platforms, ensuring continued growth.
Dominance of digital downloads and streaming
According to the ERA, 92% of sales across all three entertainment mediums (video, music, and games) were via digital downloading or streaming. This trend highlights consumers’ preference for digital content. Whether it’s video, music, or games, the convenience and extensive content selection of digital platforms have made them mainstream. As technology advances and network infrastructure improves, digital content consumption will become even more widespread. Furthermore, the development of cloud computing and 5G technology will enhance the accessibility and user experience of digital content.
