Mobile internet access revenue will overtake that of fixed broadband in the UK in 2019 as 14.5 trillion megabytes of data are set be consumed on smartphones in 2021, a new report has predicted.

PwC’s new Global Entertainment & Media (E&M) Outlook, which covers everything from newspapers and magazines to esports and virtual reality has forecast that the entire UK E&M market will be worth £72 billion in 2021, up from £62 billion in 2016.

The professional services group predicts that, in terms of consumer spend, the internet access segment will experience 3.6 percent growth over the same period, reaching £14.1 billion in 2021.

Phil Stokes, UK Head of Entertainment & Media at PwC, said: “Government incentives and a more favourable regulatory environment for alternative operators should boost high speed fixed broadband penetration over the next five years to 77 percent by 2021, up from 17 percent by the end of 2016.”

But with 14.5 trillion megabytes of data set to be consumed on smartphones in 2021, he added: “With smartphone ownership forecast to increase over the same period and new players entering the mobile internet market, mobile internet access revenue is set to overtake fixed broadband as consumers spend more time online on their phones.”

“Traditional” TV and video services will remain the largest generators of E&M revenue in 2021, although they will fall 0.6 percent over the period to £9.5 billion.

In contrast, revenue from internet video is forecast to grow by nine percent, reaching £1.4 billion in 2021.

Stokes noted the importance of original content to this growth.

“While the vast back catalogue of shows is often credited as the reason for subscribing to internet video services, companies have invested heavily in producing original content,” he said.

“Four of the top 10 programmes watched via subscription video on demand in 2015 were original productions showing that for consumers, fresh, high quality, content is king.”

Virtual reality services are forecast to record the highest growth, with revenues set to grow 76 percent to £801 million in 2021.

“We forecast the number of virtual reality headsets in use in the UK will pass 16 million by 2021,” Stokes said.

“Around 12 million of these headsets will be portable mobile VR devices that use a smartphone at their core as these are more affordable for consumers and benefit hugely from the fast evolution and replacement rate of smartphones."

The report also predicted revenue growth for books, cinema, esports, music and video games.

However, revenue from magazines and newspapers is expected to fall.

Elsewhere in the report, PwC said the mobile internet advertising market is set to grow 17.1 percent to £8.1 billion.

Click here to take our digital content survey

 

More News

BT signs up Symantec to tackle SME cyber threats BT signs up Symantec to tackle SME cyber threats BT has teamed up with Symantec to expand its security offering with a new solution for SMEs. More detail
Proximus bets on emoticons to help recruitment drive :-) Proximus bets on emoticons to help recruitment drive :-) Proximus is hoping winking face and see-no-evil monkey will help it to recruit the likes of copper splicers and data scientists. More detail
BT, VEON announce senior exec departures BT, VEON announce senior exec departures BT’s legal chief and the man in charge of transformation at VEON are set to be replaced, the two operators have revealed. More detail
SIRO, Huawei trial 10GBps fibre technology SIRO, Huawei trial 10GBps fibre technology Irish wholesale broadband provider SIRO has tested an emerging fibre technology that could allow it to offer symmetrical 10GBps connections to customers. More detail
Nokia sees Group COO depart Nokia sees Group COO depart Nokia’s Group COO has left the company just over six months after the role was created. More detail
    

@eurocomms