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This sector has seen significant diversification powered by the private sector. The UK is now the second largest TV exporter in the world.
Since 2010, the number of businesses involved in the UK broadcasting industry has grown by 82% (from 650 to 1180).
Over this period, a revolution has occurred that has loosened the control of a few major players and opened the market to an army of smaller, more nimble broadcasting providers.
Four factors have driven this transformation:
According to Ofcom, the UK is now the second largest TV exporter in the world, driven primarily by growth in the private sector.
Diversification has come with greater profits. Recent data projects revenue growth in the UK broadcasting sector of 5.5% over the period 2013-18.
But with new technology comes new challenges. Viewers now demand instant access to hundreds of shows across multiple devices, which has created fierce competition for eyeballs – intensified by a relatively low barrier to market entry (a broadcasting licence in the UK can cost as little as £2,500).
What’s more, with the launch of on-demand services (most notably Netflix and Amazon Video), UK broadcasting companies find themselves in direct competition with American providers, whose deep pockets afford them the luxury of investing heavily in new shows without taking on undue risk.
The way people consume broadcast media has evolved rapidly in the past 10 years, with growing numbers regularly using mobile devices. Virtual reality is predicted by many to be the next technology that will have a transformative effect on the industry. Although some providers such as Sky have already invested in the technology, only time will tell how significant its impact will be.
Nobody quite knows how virtual reality will affect broadcasting, or when this technology will be adopted by the mainstream consumer, but it has the potential to transform how we consume media content.
For further information on the sourced references for the Business Trends data, outside of the Business Population Estimates 2016 and Nomis official labour market statistics 2010 and 2017, please download the information here (PDF, 240MB)