The United Kingdom’s entertainment market is on track to grow in 2025, with total consumer spending projected to increase 2 percent to £11.4 billion (U.S. $13.1 billion), according to Futuresource Consulting’s latest Video Insights U.K. report.
Subscription video-on-demand (SVOD) remains the strongest driver of growth, bolstered by a rebound in box office revenue and signs of stabilization in the transactional video sector.
“We’re halfway through the decade, and we’re seeing a market continuing to climb,” said James Duvall, a principal analyst at Futuresource Consulting. “SVOD continues to expand, though not in isolation, and the interplay with pay-TV, the recovery of cinema, and renewed loyalty in transactional all tell a story of resilience and evolution.”
Futuresource expects SVOD spending to climb 6 percent in 2025, accounting for about 40 percent of overall market value. Subscription stacking remains a defining trend, with more than 52 million subscriptions across U.K. households, an increase of 12 million since 2020.
That growth is being driven by price changes and service tiering, as platforms appeal to wider audiences with premium and ad-supported packages.
Despite streaming’s momentum, pay television continues to hold the single largest share of consumer spend, representing 45 percent of the market in 2025. Futuresource forecasts that SVOD will overtake pay-TV revenues by 2029, but legacy platforms remain resilient, supported by entrenched viewing habits and the appeal of live sports.
Most British public service broadcasters, like the BBC, ITV, Channel 5 and Paramount-owned Channel 5, offer premium live sports rights over the air. The rest are relegated to traditional pay TV channels like Sky Sports and TNT Sports; both offer their premium sports on streaming platforms, which simulcast their cable network feeds.
The transactional video market, spanning both digital and physical formats, is beginning to stabilize. Digital sell-through accounts for nearly two-thirds of spending, with premium formats helping raise transaction values. On the physical side, Blu-ray continues to dominate packaged sales, representing close to 60 percent of the segment. While overall sales volumes remain in decline, a loyal collector base has helped slow the erosion.
Looking ahead, Futuresource projects modest but steady growth for the UK video entertainment industry, with a compound annual growth rate of just over 1.2 percent between 2025 and 2029.
“The U.K. market is no longer defined by a simple transition from pay-TV to streaming,” Duvall said. “It’s all about striking a balance, between subscription and ad-funded, between streaming and cinema, between digital and physical. Over the next few years, we expect that interplay to become a structural feature and shape the growth paths of every segment in this industry.” TheDesk