Streaming and retail sales in the UK music and entertainment sector are on fire, skyrocketing to record highs. This isn’t a temporary trend�it’s a seismic shift in consumer spending.
The Entertainment Retailers Association (ERA) has released interim annual figures revealing that sales from music, video, and video games surged by 7.1% in 2025, reaching a staggering �13.3 billion ($17.9 billion). This growth is more than four times the 1.5% GDP increase projected for the UK economy by the Office for Budget Responsibility, indicating a significant rebound in the sector compared to the previous year.
Over the last decade, entertainment sales have skyrocketed by over 120%, vastly outpacing the UK economy, which has only increased by 12% during the same period. �This result vindicates the transformational role of streaming services and retailers in driving the entertainment sector to new heights,� stated ERA CEO Kim Bayley. She attributed this success to a powerful mix of technology advancements, increased investments, and creative strategies that capitalize on evolving consumer preferences.
The breakdown of revenues shows that video sales rose by 8% to �5.4 billion ($7.3 billion), marking the highest growth rate since 2022. The gaming sector experienced a 7.4% increase, its strongest performance since the onset of the pandemic, while music revenue climbed by 4.2%, buoyed by a remarkable 11.5% growth in physical music formats. This surge is particularly noteworthy given the overall modest growth of UK retail as a whole.
Reflecting on the past few years, Bayley remarked, �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.� She emphasized that streaming services and retailers have successfully solidified this trend through continuous innovation and adapting to changing consumer habits.