The UK entertainment scene is booming right now, with the sector set to hit £121bn by 2028. If this materialised, the UK would then be the biggest entertainment market in Europe. A number of things are driving this growth, including digital streaming, gaming, and advertising. Music is also a significant contributor, with the rebound of cinema helping to stabilise the sector while paving the way for new revenue, especially for small businesses.
Digital Growth is a Major Driving Force
Digital growth is a major driving force for the UK entertainment scene. Music, video, and games hit a new record last year, hitting £13.3bn. These statistics show that it’s grown by over 120% in over a decade, outpacing the UK economy by quite a substantial amount.
Streaming dominance and advertising-based video on demand are major here, as is the gaming boom. Strong growth is projected within this sector as well, with the gambling sector playing a notable role. The GGY, or Gross Gambling Yield, reached £16.8 billion in March 2025, which translates to a 7.3% year-on-year increase. Remote casino games account for 46% of this, with British variants proving to be popular with UK audiences. Titles like Penny Roulette are a prime example here, but at the same time, games like blackjack and other classics are still drawing in huge numbers.
Interestingly, with the rise of digital content, we are also seeing a decline in broadcast TV. Broadcast TV’s share of viewing is shrinking, as video-sharing platforms gain more and more prominence, something we can expect to see more of as we move into 2026.
What’s Next for the UK Entertainment Sector?
Looking ahead, the UK entertainment scene looks to be entering a new phase. People now want more personalisation, but with this comes more regulation. Streaming services could well start to work together, creating fully connected digital ecosystems. We can also expect more collaboration across different platforms as well.
This is, in some ways, already happening, especially when you look at how you can now get a Sky TV package that comes with Netflix included. Data-driven personalisation could well become more sophisticated as well, by not just determining what people watch, but also how they engage with content. As the UK continues to cement itself as being the entertainment powerhouse of Europe, moves like this are not just important; they are essential, especially with there being such strong competition from Germany’s entertainment market.
With the market for VR and AR being so strong right now, and with immersive video experiences also being on the rise, we can expect to see huge growth in headset technology. With the UK having such a tech-savvy audience, and with headsets expected to double in sales by 2027, it wouldn’t be surprising to see this become such a big part of the UK’s entertainment future. Physical entertainment has also seen a strong recovery, with UK cinema set to experience record numbers by 2027, something which again could have an impact on the future of the entertainment sector.
