Streaming and retail sales soared, outpacing the UK economy by a wide margin.
In 2025, the UK’s music, video, and games sectors achieved a significant milestone, with revenues hitting an astonishing £13.3 billion ($17.9 billion). According to the latest figures released by the Entertainment Retailers Association (ERA), this represented a robust growth of 7.1%, exceeding the projections made by the Office for Budget Responsibility, which anticipated only 1.5% GDP growth for the UK economy during the same period.
This remarkable achievement highlights a resurgence in the entertainment industry compared to the previous year. Over the last decade, entertainment sales have seen a staggering increase of more than 120%, far outpacing the UK’s overall economic growth of just 12%. This trend underscores the vital role that streaming platforms and retail channels have played in enhancing consumer engagement with entertainment products.
Kim Bayley, CEO of ERA, emphasized the transformative impact that streaming services and retailers have had on the entertainment sector. In her remarks, she noted, “This result vindicates the transformational role of streaming services and retailers in driving the entertainment sector to new heights, thanks to a potent combination of technology, investment, and innovation.” She further pointed out that despite the broader economic challenges, these services are capturing a larger percentage of consumer spending, benefiting creatives across various fields such as music, film, and gaming.
The breakdown of revenue growth shows that video revenues rose by 8% to £5.4 billion ($7.3 billion), marking the highest growth rate since 2022. The gaming sector also experienced significant gains, with revenues climbing 7.4%, reflecting a resurgence since the pandemic began in 2020. Music revenue grew by 4.2%, and notably, physical music formats surged by an impressive 11.5%. This strong performance in entertainment sharply contrasts with the overall modest growth seen in UK retail.
Reflecting on the industry’s trajectory since the pandemic, Bayley stated, “Approaching five years after the first lockdown when entertainment revenues leapt an extraordinary 25% in a year, it is now clear that it was more than a blip. It marked a long-term shift in entertainment spending, which streaming services and retailers have solidified with a string of innovations.” This long-term shift indicates a promising future for the entertainment sector, suggesting that it will continue to evolve and thrive even in challenging economic climates.
