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.
