Looks like streaming services and retail are on a roll, with revenues climbing 7.1% to hit a record £13.25 billion in the UK. This sector is outperforming the broader economy, marking a significant bounce back.
In 2025, the UK’s music, video, and games sectors saw a remarkable revenue increase of 7.1%, totaling £13.25 billion (€15.3 billion). This growth is based on interim annual figures released by the digital entertainment and retail association, ERA. The growth rate outpaced the UK’s predicted 1.5% GDP increase, demonstrating a resurgence in the entertainment market compared to the previous year.
Over the past decade, entertainment sales have skyrocketed by over 120%, significantly outpacing the UK economy’s 12% growth during the same period. Within this sector, music revenue surged by 124%, video by 171%, and games by 86%. These numbers showcase the vital role digital platforms have played in shaping the future of entertainment.
ERA’s CEO, Kim Bayley, emphasized the impact of streaming services and retailers on boosting the sector’s revenue, stating their contributions have become essential in the UK’s creative economy. The 7.1% growth rate in 2025 was more than double the 3.3% growth seen in 2024, marking a return to the high growth last experienced during the pandemic year of 2020.
Breaking down the numbers, video revenues climbed by 8% to £5.43 billion, while games grew by 7.4%. Music revenue improved by 4.2%, with physical formats seeing a strong increase of 11.5%. This contrasts sharply with the more subdued growth across the UK retail sector.
The combined worth of music, video, and games is now nearly double the £6.72 billion recorded in 2017, and 66% higher than the pre-pandemic total in 2019. Bayley remarked that the entertainment industry’s growth trajectory shows it’s more than a temporary spike following lockdown, highlighting a long-term shift in consumer spending.
In the music sector, streaming subscriptions and physical sales hit a record high of £2.45 billion. Streaming subscription revenue increased by 3.2% to £2.04 billion, while physical music sales rose by 11.5%. Vinyl continues to dominate physical sales, with revenues increasing by 18.5%.
The biggest-selling album of the year was Taylor Swift’s “The Life Of A Showgirl,” while the top single was “Ordinary” by Alex Warren. Emerging UK artists like Olivia Dean and Lola Young also gained traction, benefiting from various support programs initiated by streaming services and retailers.
In video, the sector has now reached £5.43 billion, with streaming video-on-demand services such as Netflix and Prime Video leading the charge. Revenues from physical formats are declining but at a slower pace than in the past, indicating a potential stabilization in the market.
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The games sector also experienced growth, generating £5.36 billion, with mobile and tablet revenues making significant contributions. The popular title, EA Sports’ FC 26, topped sales charts with over 1.97 million units sold.
Overall, the report signals robust growth across all three sectors, driven by evolving consumer habits and continued investment in digital entertainment. As streaming modes of consumption grow, they remain critical to the broader economic landscape.