Author:
James GrovesPublish date:
Jun 21, 2017Social count:
0
0
SHARES
The combined revenues of the 100 largest media and entertainment companies in the UK increased to a new record of £96.3 billion in the last financial year, according to a state of the sector report from Deloitte.
Revenue growth for the top 100 has grown 11 per cent from 2016 (£87 billion).
Media Metrics 2017 analyses the three-year financial performance of the top 100 revenue-generating media and entertainment companies in the UK. The report highlights the main trends and issues facing the sector, and how business models may need to evolve to reflect consumer demand.
TV production and distribution was once again the largest sub-sector in terms of revenue (£40 billion), average revenue per company (£2.1 billion) and also accounted for the largest share (41 per cent) of all revenues for companies in the index. Advertising was the second largest sub-sector in the index, generating £20 billion in combined revenues, followed by Information Publishing and Events (£18 billion).
The sub-sector was also the most profitable sub-sector, generating combined profits of £2.6 billion, up 57 per cent year-on-year. However, the top 100 as a whole saw profitability decline from last year, falling by 52 per cent to £4.8 billion (£9.9 billion in 2016).
The ten largest media and entertainment companies in the UK account for 70 per cent of revenues (£6 billion). By contrast, the bottom 50 companies account for just eight per cent of total revenues.
Dan Ison, lead partner for media and entertainment, said: Against a backdrop of uncertainty, both politically and economically, over the last 12 months, it is reassuring to see that the UK media sector has performed robustly. The fact that this exciting and creative sector is close to £100 billion in size is nothing short of impressive.
The UK is a global player in the media sector, which is partly why currency movements, and in particular a weakened pound, played a significant role in boosting year-on-year revenues by £10 billion. Managing foreign exchange risk will be an ever more important management skill in the coming years.
The UK's creative economy continues to be a valued export market, and punches above its weight when it comes to sating the global appetite for media content. The future success stories in the world of film, TV, video gaming and music will be dependent on the continued preservation of the UK's creativity.
According to the report, consumer appetite for live content is still strong, despite advances in technology and digital adoption. Two of the three largest media sub-sectors in the top 100 index TV production and distribution, and information publishing and events both generate much of their revenue and profit through the consumption of live content. Trade fairs, business conferences, live music gigs and theatre remain popular revenue generators, and catering for this demand will be core to the business strategies for many media companies.
Paul Lee, head of technology, media and telecommunications research at Deloitte, added: Demand for live experiences has remained vibrant and valuable for both businesses and consumers. Whilst digital technology, such as streaming and video, has improved dramatically over the last few years, our research has found that people still like to attend live events.
Being able to say I was there is still highly valued in a market where demand is often FOMO-driven. Networking, socialising and experiencing events are, for the time being, difficult to fully replicate in a digital format.
The report also asks whether publishers that rely solely on advertising models to fund online content can compete with the success and dominance of the digital giants that have emerged over the last decade. Consumers are faced with a proliferation of online content available to them, and this over-supply has had a significant impact on the revenue-earning potential of online advertising. As a result, online publishers are increasingly adopting subscription business models.
Ison continued: The internet offers a route to a global marketplace of billions of readers, which is why the ad-funded online model has remained alluring. However, it is a model that has historically proven to be challenging to monetise, particularly for publishers who only see significant value being generated from a tiny proportion of this huge market.
The advertising-only business model has an expiration date for some publishers. Over the past year we have seen an increasing number of news publishers earning regular income from subscribers. This is a trend that is likely to continue in order for these outlets to remain financially sustainable.
In focusing on subscriptions, publishing would be following in the commercial footsteps taken by business information services, telecoms, pay-TV, music and an increasing range of consumer goods.
Most recent headlines
17/02/2025
TVBEurope talks to the team who brought a piece of broadcasting history back to life on BBC Wales last night
By Jenny Priestley
Published: February 14, 2025 ...
17/02/2025
Eligible studios will receive the relief directly from their local authorities, with no need to submit a claim
By Matthew Corrigan
Published: February 17, 20...
17/02/2025
As DEI initiatives come under pressure in the USA, supporters of Rise, which promotes diversity in the media and entertainment sector, discuss the continuing im...
17/02/2025
EIB Global loan will partially fund SES's continued O3b mPOWER medium earth orbit (MEO) fleet expansion enabling additional capacity worldwide. O3b mPOWER s...
15/02/2025
At Nielsen, Business Resource Groups (BRGs) play a critical role in nurturing a ...
15/02/2025
Innovation to empower creativity: Explore the latest in Lightroom
Rob Christensen February 15, 2025
0 Comments
Whether you want to remove distracting ...
15/02/2025
Wisycom, a worldwide leader in RF technology and provider of wireless solutions, announces a new distribution agreement with EQUAPHON. An Argentinian profession...
15/02/2025
DPA Microphones, the leading manufacturer of high-quality microphone solutions, is pleased to welcome Nicholas Nick Mariano and Vincent Vince Divine to the ...
15/02/2025
Tuxera, a leading provider of quality-assured file systems and networking solutions, will showcase how Tuxera Fusion SMB enables unprecedented performance for m...
15/02/2025
Bitmovin's latest Video Developer Report indicates an increasing role of AI, the slow adoption of next-generation codecs, and continuing challenges when it ...
15/02/2025
When Michelin Enterprises set out to promote its prestigious Hotel Guide in the new Sleepless in the Kitchen , campaign, veteran German/Slovenian gaffer Robert...
15/02/2025
Formula E, the world's first all-electric racing series, revolutionizing motorsport with cutting-edge technology and a commitment to sustainability has sele...
15/02/2025
Agile Content, a global leader in TV and video technology solutions, announces its rebranding to AgileTV.
The transition to AgileTV stems from a commitment to ...
15/02/2025
Hiltron Communications will promote the latest additions to its range of satellite communication products, systems and supporting services at GovSatCom 2025. Th...
15/02/2025
Following the success of the original Airglow Booklight, DoPchoice debuts a new addition to their inflatable line the Float. This lightweight, inflatable, round...
15/02/2025
LAS VEGAS Marshall Electronics has announced that it will debut its newest camera controller, the RCP Plus, at the 2025 NAB Show at Booth N2649 between April 5 ...
15/02/2025
ATLANTA Gray Media has named Blake Sebo as the next general manager of KTUU and KYES, Gray's NBC and CBS affiliates in Anchorage, Alaska....
15/02/2025
KOKKEDAL, Denmark DPA Microphones will feature its new CORE+ technology for distortion-free microphone sound at the 2025 NAB Show, April 5-9, in Las Vegas....
15/02/2025
SWANSEA, U.K. QuickLink will launch StudioPro-NDI and StudioPro-3, two new models of its QuickLine StudioPro video production platform, at the 2025 NAB Show, Ap...
15/02/2025
Live From 2025 NBA All-Star Game Weekend: After 25 Years, Turner Sports All-In F...
15/02/2025
NASCAR Driver Cam on Max Embraces Cloud-Based Workflow for 2025 Season Chris Brown of WBD Sports says Mobii will play key part in delivering signals from the tr...
14/02/2025
Last month, we officially launched the Spotify Partner Program, a powerful new m...
14/02/2025
From an island off the coast of Lutruwita to the global stage in France SBS & ...
14/02/2025
The future of electro-optical/infrared (EO/IR) land systems is evolving so that ...
14/02/2025
Here are 5 reasons why you should attend ISE 2025
Discover more about Calrec: Learn more about Calrec's legacy of innovation in broadcast audio solutions ...
14/02/2025
World Radio Day: On the same wavelength
By Graham Murray, International Sales Manager at Calrec
To mark World Radio Day, Calrec's International Sales Ma...
14/02/2025
DALLAS and TYSONS, Va. Tegna has concluded a broadcast rights agreement that makes Tegna's KFAA in Dallas the exclusive local television partner of the Dall...
14/02/2025
Amazon's Prime Video has released a new app for Apple TV that the streamer said delivers an improved streaming experiences with faster scrolling, improved s...
14/02/2025
CLEVELAND Telos Alliance announced a software update for its Axia Quasar XR and SR line of audio-over-IP (AoIP) mixing consoles and will show the offering at th...
14/02/2025
Puget Systems Returns to HPA Tech Retreat 2025 with New Analysis Tools for Puge...
14/02/2025
Glass Animals: Tour of Earth Uses Blackmagic Live Production Workflow
Brie Clayton February 14, 2025
0 Comments
80six deploys Blackmagic URSA Broadcas...
14/02/2025
A dispute between Paramount and Youtube TV that would have pulled CBS stations and Paramount's cable channels from the streaming service has been temporaril...
14/02/2025
Colourist Deidre (Dee) McClelland details how she helped shape the distinct look and feel of whimsical Oscar-nominated stop-motion film, Memoir of a Snail
By C...
14/02/2025
BitFire said it intends to introduce forward-looking services that simplify the launch of live production workflows, and enhance real-time collaboration
By Jen...
14/02/2025
The claim by the liquidators is the latest twist in the ongoing saga of the companys collapse at the end of 2021
By Matthew Corrigan
Published: February 14, ...
14/02/2025
A carriage dispute between YouTube TV and Paramount could come to a head today (Feb. 13), with the virtual pay TV provider threatening to pull all of the progra...
14/02/2025
ENGLEWOOD CLIFFS, N.J. LG Electronics USA has opened a new in-house, state-of-the-art virtual production studio at its 360,000-square-foot North American headqu...
14/02/2025
NEW YORK In a bid to help local broadcasters find new ways of monetizing their content, the Coalition for Innovative Media Measurement (CIMM) and TVB have relea...
14/02/2025
WASHINGTON Three Democratic U.S. Senators have sent a stern letter blasting FCC Chair Brendan Carr for the weaponization of the agency for attacking broadcast...
14/02/2025
Years after launching the streaming service Apple TV+ in November of 2019, Apple has finally released a version of its steaming app for Android devices....
14/02/2025
FOOTHILL RANCH, Calif. Red Digital Cinema will make its V-RAPTOR [X] and KOMODO-X camera systems available with Nikon's premier Z Mount, providing filmmaker...
14/02/2025
DAYTONA, Fla. The Fox Sports production of this year's Daytona 500 will see the addition of a few new tech elements and the continued unfolding of the broad...
14/02/2025
Watch Bryson Battles Blind Audition on The Voice Get a Four-Chair Turn Michael Bubl said the Boston Conservatory at Berklee musical theater senior might have...
14/02/2025
2025 Daytona 500: FOX Sports Looks To Ride Super Bowl LIX Momentum Into NASCAR S...
14/02/2025
14 Feb 2025
VEON's Kyivstar and the Come Back Alive Foundation Raise USD 2....
14/02/2025
Max Renews THE PITT, Starring Noah Wyle, For A Second Season
Max
Warner Bros. Television Group
The Pitt
New Episodes Of The Medical Drama From John...
14/02/2025
This year, Technicolor proudly celebrates 110 years of shaping the magic of cinema pioneering color, visual effects, and innovation that bring unforgettable l...
14/02/2025
NBA All-Star: More Games, More Teams, More Music, More Sound From the Court Turner Sports' team will deploy familiar tech to capture all the audio By Dan D...
14/02/2025
LIV Golf Continues To Innovate With Drones, Data-Driven Graphics, and All-Access...
Author:
