UK home entertainment sector grows 10% to £5.7bn
The global media and entertainment industry reached $1.1tn in 2025 (+7% YoY). Global video entertainment is now worth $349bn, with international markets accounting for around 60% of total value and growing faster than the US.
Uk market performance
The UK media and entertainment market hit a record £34bn in 2025 (+8% YoY). Home Entertainment rose 10% to an all-time high of £5.7bn, reflecting the UK’s position as one of the most advanced and innovative screen-consumption markets globally.
Cinema and box office recovery
Global box office is forecast to reach $35bn in 2026 (+5% YoY), marking continued post-pandemic recovery. Cinemas remain a critical first window, supporting downstream transactional and streaming value.
Streaming and ad-supported growth
Streaming dominated consumption, with over 20m UK households subscribed to at least one service. Ad-supported tiers accelerated rapidly: the UK reached 23m ad-supported subscriptions in 2025, driven by price sensitivity and bundling. Over half of UK SVoD subscriptions now include ads.
Partnerships and eventised releases
Cross-platform partnerships and live or event-based releases drove engagement and subscriber growth. High-profile hybrid releases, such as Netflix’s STRANGER THINGS finale in cinemas and streaming, demonstrated the power of “eventised” viewing and strengthened ties between theatrical and home entertainment.
Transactional as a value bridge
Transactional formats remain a vital commercial bridge between cinema and subscription streaming. In 2025, 79 films were released at premium price points shortly after cinema, with premium formats now accounting for over 20% of transactional spend and set to grow further in 2026.
Digital and physical formats
UK digital transactional value grew steadily, led by EST, while physical formats remained resilient. Blu-ray and 4K collector editions delivered strong value growth, underlining continued consumer demand for ownership and premium experiences.
Content and original IP success
Original IP and UK-backed productions performed strongly across the lifecycle. Titles such as WICKED, A MINECRAFT MOVIE and SINNERS showed successful conversion from box office to premium digital value, reinforcing appetite for new stories alongside major franchises.
Future outlook
Looking ahead to 2026, stable windowing models, premium pricing, ad-supported streaming, and live-event experimentation are expected to sustain growth. The industry’s future lies in complementary models working together, supported by innovation, partnerships and deeper understanding of consumer behaviour.
Social video and creators
Social video platforms continued to expand their economic impact, with YouTube and TikTok driving engagement and influencer marketing reaching $32.5bn globally. Creator-driven content is becoming an increasingly important part of the wider entertainment ecosystem.