UK Film Industry Set to Record Huge Financial Rewards Over Next Four Years.

Data has shown that the film industry is set to record huge financial rewards at the box office over the next four years; rewards that will further be bolstered by a marked rise in film streaming. Stealth Media Group explores what this will mean for the profitability of film financing.

The Growth of the UK Media Industry

Data released by accountancy firm PricewaterhouseCoopers (PwC) shows that the UK’s entertainment and media industry worth, as a whole, is expected to rise from £58.6 billion in 2013 to £64 billion by 2018.The Accountancy firm further found that the main driver of this significant growth will be a 5.1% rise in the video games market to £4.1 billion, with mobile gaming a strong contributor, as it’s expected to measure a 6.9% revenue growth.

However PwC also found that other forms of media will contribute to growing sector revenues, and these include the UK box office. PwC predicts that this area of the UK film industry will see a revenue rise of 2.8% in the years leading up to 2018. Capital is expected to hit £1.4 million, and ticket sales are expected to soar by 16%.

The Diversification of the Global Film Industry

Stealth Media Group finds it important to note at this point that the global film sector is currently undergoing a process of diversification, and this process has increasingly seen revenue potential shift from the box office to online film distribution, which widens the scope of monetary return available to those who invest in this growing industry.

This is an opinion that seems to be backed up by further statistics delivered by PwC. The accountancy experts found that whilst the DVD and Blu-ray market is in decline, the film streaming market (services offered by companies such as Netflix) is quickly accounting for the fall, generating massive revenues.

PwC found that whilst the revenue generated by physical media will drop from £7.29 billion in 2013 to £5.2 billion in 2018 in the US alone, in the same country, services such as Netflix are expected to record massive gains. They measured a 24% revenue rise in the first quarter of 2014 alone.

Stealth Media Group on the Profit Potential of Film Investment

At Stealth Media Group these figures tell us two things. The first is that the rise in box office revenue suggests a clear avenue of profitability for film investment as the market grows. The second is that the changing nature of the market needs to be addressed, in order to ensure that said revenue remains stable for investors going forward.