Creative Industries Sector Deal: UK

Key insights

6 takeaways

01
The UK government and the creative industries sector have launched a joint investment deal exceeding £150 million to support cultural and creative businesses.
02
The UK Games Fund and Tranzfuser programmes received an additional £1.5 million in total funding to extend operations through 2020.
03
The government is investing over £33 million specifically into immersive technologies, including virtual reality video games and augmented reality experiences.
04
The initiative aims to double the UK's share of the global immersive content market, which is projected to be worth over £30 billion by 2025.
05
The UK virtual reality industry is forecast to be the fastest-growing entertainment and media sector between 2016 and 2021, reaching a value of £801 million.
06
Projections indicate that 16 million virtual reality headsets will be in use across the UK by 2021.

Summary

The Creative Industries Sector Deal represents a strategic partnership between the UK government and the Creative Industries Council, designed to solidify Britain’s status as a global leader in the creative economy. The primary objective of this initiative is to foster growth across cultural and creative sectors, with a specific focus on doubling the nation’s share of the global immersive content market by 2025. This market is projected to reach a valuation exceeding £30 billion within that timeframe.

To achieve these goals, the government and industry partners have committed to a joint investment exceeding £150 million. A significant portion of this capital, totaling over £33 million, is earmarked for the development of immersive technologies, including virtual reality video games, interactive art, and augmented reality applications. Within the gaming sector specifically, the UK Games Fund and the Tranzfuser program have secured extended government support, including an additional £1.5 million in funding to sustain operations through 2020.

The initiative is underpinned by strong growth projections for the UK’s immersive technology sector. Industry analysis indicates that the domestic virtual reality market is poised to experience the fastest growth rate among all entertainment and media segments between 2016 and 2021. By 2021, the value of this industry is expected to reach £801 million, supported by an estimated base of 16 million virtual reality headsets in use across the country. By providing targeted financial support and fostering early-stage development, the deal aims to ensure that UK firms remain competitive on the international stage while cultivating the next generation of creative talent.