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Video games are no longer the most profitable form of entertainment in the UK, according to data reported by ERA, the digital entertainment and retail association that represents home video, music and games retailers in the region.
It is the first time that they have not been at the No. #1 spot in terms of sheer revenue since 2012, despite the fact that digital and physical video game revenue has actually risen by 2.9% over the previous year to a total of £4.74 billion.
That’s because this year’s No #1 is TV and film content, which has grown by 10% to £4.9 billion thanks to moves by subscription services like Netflix, Disney+, Paramount+, Apple TV+ and other streaming competitors, all of which combine to make up 89% of the current video market.
While this change may seem likely to embolden games to follow a similar path when it comes to distribution methods, it is worth noting that not a lot (if any) of these platforms are actually currently profitable, with Disney CEO Bob Iger acknowledging that Disney+ needs to focus on ‘making its streaming business profitable rather than concentrating on simply adding subscribers’, in a November 2023 report by CNBC.
It is also looking likely that video games will return to the top spot again in 2025, as gaming audiences eagerly anticipate the release of Rockstar Games’ Grand Theft Auto VI, the sequel to their 2013 game Grand Theft Auto V, which is currently the second best-selling video game of all time after Mojang’s Minecraft.
ERA gets its data on media for its reports by combining figures from sources like GfK, Official Charts Company, Omdia and Futursource.
