The UK entertainment market reached a record £11.1 billion in 2022, a 6.9% year-on-year increase that nearly doubles its 2015 valuation.
Digital services now dominate the landscape with a 91% market share across video, music, and gaming sectors.
The video games sector is the largest segment at £4.66 billion, with digital software sales—driven by mobile and console DLC—accounting for 90% of that total.
The video market grew to £4.43 billion, supported by a 17.6% surge in subscription video-on-demand services, with 68% of UK households now averaging 2.5 subscriptions each.
Music industry revenue reached £1.99 billion in 2022, with subscription streaming accounting for 84% of total valuation.
Despite the digital shift, physical music retail saw a 12.6% growth in sales at high-street and independent shops, with vinyl revenue surpassing CD sales for the first time this century.
The United Kingdom’s entertainment market reached a historic peak of £11.1 billion in 2022, representing a 6.9% year-on-year increase and nearly doubling its total value since 2015. This growth is fundamentally underpinned by a comprehensive transition to digital consumption, with digital services now commanding a 91% market share across the video, music, and gaming sectors. While physical formats generally continue a long-term decline, specific niches such as vinyl and 4K UHD Blu-ray demonstrate notable resilience, with vinyl revenue surpassing CD sales for the first time this century.
The video games sector remains the largest individual segment, valued at £4.66 billion. Digital software sales account for 90% of this spend, led by mobile gaming and console downloadable content. Although hardware sales faced challenges due to global supply chain constraints, the market remains robust, with digital sales for major titles like Elden Ring and FIFA 23 significantly outperforming physical retail. Similarly, the video market reached a record £4.43 billion, fueled by a 17.6% surge in subscription video-on-demand services. Approximately 68% of UK households now maintain an average of 2.5 streaming subscriptions, cementing the dominance of online distribution.
The music industry mirrors these trends, with subscription streaming accounting for 84% of its £1.99 billion valuation. Interestingly, 2022 saw a nuanced recovery for physical retail as high-street specialists and independent shops experienced a 12.6% growth in sales following the normalization of post-pandemic trading. Despite this resurgence of local brick-and-mortar outlets, online channels still facilitate nearly 95% of total music spending. Strategic initiatives like Record Store Day and the implementation of advanced data tracking continue to support the industry's evolution, ensuring that both digital innovation and traditional retail advocacy remain central to the UK’s creative economy.
