Key Takeaways:
- The entertainment industry in the UK has seen a significant surge in revenues, with a 7% growth in 2025 to £13.3bn.
- The growth in entertainment sales is more than four times higher than the 1.5% GDP growth forecast by the Office for Budget Responsibility (OBR).
- Video streaming services such as Netflix, Disney+, and Amazon Prime have driven the growth, with revenues reaching £5.4bn.
- The gaming industry has also seen significant growth, with a 7.4% increase in revenues to £5.4bn.
- The music industry has experienced a sharp reversal in fortunes, with revenues rising by 4% to £2.5bn, driven by streaming services and physical formats.
Introduction to the Entertainment Industry’s Growth
The entertainment industry in the UK has experienced a significant surge in revenues, with a 7% growth in 2025 to £13.3bn, according to figures from the Entertainment Retailers Association (ERA). This growth is more than double the 3.3% growth recorded in 2024 and the fastest pace since 2020, when Covid lockdowns forced people to stay at home. The surge in entertainment sales last year was more than four times higher than the 1.5% GDP growth across the wider UK economy forecast by the Office for Budget Responsibility (OBR). This suggests that Britons are opting to spend their disposable income on entertainment at home rather than heading out, amidst a slowdown in the economy.
The Rise of Video Streaming Services
Video streaming services have been a major driver of the growth in the entertainment industry, with revenues reaching £5.4bn in 2025. This represents an 8% increase from the previous year and is the largest subsector for the second successive year. The success of streaming services such as Netflix, Disney+, and Amazon Prime has captured the attention and wallets of British households, with consumers spending big on subscription services. The growth in video streaming revenues has been remarkable, with the sector’s revenues growing more than 14 times faster than the wider economy over the past decade.
Gaming Industry Growth
The gaming industry has also seen significant growth, with a 7.4% increase in revenues to £5.4bn in 2025. This growth was driven by an 8.8% rise in revenues from mobile and tablet games to £1.9bn, which offset a decline in physical game consoles such as PlayStation and Xbox. The success of games such as EA Sports FC 26, which sold almost two million copies across digital and physical formats, has contributed to the growth in the gaming industry. The gaming industry has outstripped its cumulative growth over the four previous years, with revenues reaching £5.4bn in 2025.
Music Industry Boom
The music industry has experienced a sharp reversal in fortunes over the last decade, with revenues rising by more than 4% to £2.5bn in 2025. The growth in music revenues was driven primarily by subscriptions to streaming services such as Spotify and Apple Music, although physical formats also increased their share of music revenues to 15%, the highest level since 2021. The success of artists such as Taylor Swift, who produced the best-selling album for the second year running, has contributed to the growth in the music industry. The biggest single of the year was Ordinary by Alex Warren, which generated the equivalent of 2.2 million sales.
Impact on the Wider Economy
The success of the entertainment industry stands in stark contrast to the travails of Britain’s leisure and hospitality industries, which are struggling to stay afloat amidst crippling tax rises and as punters stay away. One pub closed each day on average in 2025, according to data from global tax firm Ryan. The entertainment industry’s growth suggests that cash-strapped consumers are opting to spend their disposable income on keeping themselves amused at home rather than heading out. Kim Bayley, the chief executive of the ERA, said: "This result vindicates the transformational role of streaming services and retailers in driving the entertainment sector to new heights, thanks to a potent combination of technology, investment and innovation."
Conclusion
In conclusion, the entertainment industry in the UK has experienced a significant surge in revenues, driven by the growth of video streaming services, gaming, and music. The industry’s success stands in contrast to the struggles of other sectors, such as leisure and hospitality. As consumers continue to opt for entertainment at home, the industry is likely to continue to grow, with streaming services and retailers playing a central role in driving the sector’s growth. The entertainment industry’s growth is a testament to the power of technology, investment, and innovation in driving economic growth and creating new opportunities for businesses and consumers alike.
