The UK home entertainment market will be worth £5 billion by 2025, according to a new report from trade bodies the British Association for Screen Entertainment (BASE) and DEGI: Digital Entertainment Group International.
The report noted that 21m consumers in the UK still don’t have SVOD, equating to 12m households. As a result, there is still headroom for growth across transactional content, with 75,000 titles available through transaction in the UK.
The report also said that physical formats such as discs, remain relevant with 11 million UK households still actively using DVD players. There were over 6.8 million physical buyers in the UK market in 2020, and 4.6 million in 2021.
Titled ‘The Evolution of Home Entertainment Report 2020 – 2025’, the report more broadly paints a picture of a growing sector worth £3.3 billion in 2020 and £3.7 billion in 2021.
With the addition of cinema box office and pay-TV, the global market is set to reach £12 billion by 2025. The UK is estimated to represent 5% of the global market.
The report says that the home is now more central to family entertainment consumption than it has ever been, with multiple millions of consumers accessing content via physical media (discs), digital services, and in-home smart TVs or other connected devices.
Definitions of the home entertainment category will keep evolving, as technology and business models evolve, with the growth and adaptation of SVOD in the UK, as the leading players introduce ad-funded subscription levels. AVOD and FAST channels will take a larger share of consumer engagement, said the report.
It said that theatrical releases have been re-established as the biggest driver of engagement and value across the content life cycle. “Strong performance theatrically frames subsequent engagement and revitalises surrounding IP,” said the report.