On the presumption that Covid-19 continues to stall growth throughout this year, the UK’s entertainment and media (E&M) sector is forecast to suffer a sharp decline in growth this year as a result of the Covid-19 pandemic, before recovering to grow by £15 billion over the next five years according to PwC’s latest Global Entertainment & Media (E&M) Outlook 2020-2024.
Also factoring in a recession, the study found that 2020 will see a 6.7% fall in UK E&M revenue compared with 2019. Yet at the same time it does say that while the shockwaves from 2020 will continue to ripple through the economy, the industry’s fundamental growth trajectory is forecast to remain strong and in 2021, the UK’s E&M industry will grow by 6.72%. Across the five-year period, it is forecast overall revenue growth will run at a 2.83% compound annual growth rate (CAGR) to be worth £79.8 billion by 2024.
“Parts of the media sector have been hit very hard by the Covid-19 pandemic, particularly in-person activities or those reliant on advertising revenue,” remarked Mark Maitland, UK head of entertainment and media at PwC. “This will drive a c. 7% decline in sector revenues in 2020, but in recent months we have already seen improving performance, and as such, we expect the sector revenues to return to 2019 levels in 2021.”