U.K. Screen Industry Valued at £12.5 Billion


The total value of the U.K. screen industry, including SVOD, premium AVOD, TVOD, physical, cinema and pay TV, rose 5.6 percent in 2023 to £12.5 billion ($15.8 billion).

Consumer spend across the U.K. home entertainment category rose to £4.9 billion ($6.2 billion) in 2023, inclusive of all SVOD, digital and disc sales and rental (EST, VOD, DVD, Blu-ray, 4K UHD, boxset), up 10.8 percent.

The rise was driven by the ongoing uptake in subscription services, where 19.3 million U.K. homes (67.3 percent) accessed an SVOD service in Q3 2023, an increase of half a million on the previous quarter, with an average of 2.9 services per household in the U.K.

The introduction of ad-supported tiers across all SVOD services is anticipated to add £200 million ($253 million) to the consumer value of the U.K. home entertainment market in 2024. U.K. premium video revenue (including hybrid SVOD advertising, premium AVOD and FAST) will be £1.6 billion ($2.03 billion), up 20 percent.

Global media and entertainment spend will rise by 6.4 percent to one trillion dollars in 2024, fueled by the online video contribution of $367 billion, as well as a theatrical contribution of $41 billion, alongside games, music and linear TV.

Kevin Dersley, managing director of Elevation Sales and co-vice chair at BASE, said: “2023 saw a widespread conversation around ownership that resulted in some positive results for the disc industry; we were buoyed by the opening of so many new HMV stores on the Highstreet, and their welcome return to 363 Oxford Street, and with a continued presence and investment from leading grocers for the biggest selling titles. We believe we witnessed the re-emergence of a ‘gifting’ season in Q4, reinforced by our friends in vinyl. Savvy consumers have long understood the value of a disc, and fans invest in the very best quality versions of the films and shows they love on Blu-Ray and UHD, but there is a building noise around broader physical ownership. Whether that is comment from Christopher Nolan or Guillermo del Toro extolling the virtue of disc ownership, or high-street shoppers browsing the aisles of HMV, it gives us real hope for the importance of the physical market in 2024.”

Lesley Johnson, co-vice chair at BASE and global director of home entertainment at BBC Studios, said: “2023 has demonstrated that the TV sector remains robust in a tough economic climate with 8.3 million transactions, and a 22 percent share of the EST and physical market. Fans and collectors continue to be thrilled by special edition boxsets and are willing to invest in owning their shows on disc. It’s also been a year in which consumers have begun to realize that shows do not stay on streaming formats forever and that if it’s something they love, then purchasing a boxset means they truly have instant access. At BBC Studios, we are constantly delighted by the longevity of our classic catalog, which engages audiences, with a particular note for Only Fools and Horses, Pride and Prejudice and Dad’s Army. However, the nation’s favorite Time Lord, Doctor Who, must take the crown in his 15th regeneration, with Ncuti Gatwa attracting fans new and old.”

Liz Bales, chief executive at BASE and DEGI, said: “These figures demonstrate what we at BASE already know about audience behaviors and the consequent market trends across all home entertainment channels, inclusive of transactional, streaming, pay TV and FAST: a holistic view of consumer entertainment consumption is now imperative. Audiences view their entertainment from a content-first perspective, not in industry acronyms, and we must do the same, while FAST and AVOD may be new industry innovations, consumers have always known advertising to exist around their home entertainment. The future growth of entertainment lies in both consumer spend and the advertising revenue that accompanies both the powerhouse that remains pay TV and the emerging contribution from AVOD. 2024 will deliver both success and challenge, but an industry that continues to work together is one that will continue to thrive.”

The figures were released by the British Association for Screen Entertainment (BASE), Omdia, Kantar, Futuresource Consulting and Official Charts Company.