The Creative Sector in the U.K. Takes Advantage of Digitisation

The Creative Sector in the U.K. Takes Advantage of Digitisation

LONDON, March 25, 2013 /PRNewswire/ --



- Revenues of creative industries grow to more than GBP 30 billion



Digital revenues increase by more than 10 percent per year since 2001 / Gains larger
than losses in analogue businesses / Improved monetisation of content on the Internet /
Study by Booz & Company on trends in book and press publishing, film/television, gaming,
and music industries



The bottom line of digitisation and the Internet is surprisingly positive for the
creative sector in the U.K. In spite of significant structural changes, the revenues of
the five major industries book publishing, press publishing, film & television, gaming and
music have increased to more than GBP 30 billion since 2001; translating into a stable
yearly growth rate of approximately one percent. Revenues from digital businesses even
grew by more than 10 percent per year to almost GBP 9 billion. The underlying study "The
Digital Future of Creative U.K." by Booz & Company and commissioned by Google has been
released today in London.



The Internet in particular has driven media consumption of Europeans to record levels.
On average, Britons spend almost five hours per day with media products and services. Two
hours and 20 minutes of that are dedicated to watching TV and approximately 50 minutes are
spent with newspaper and magazines. The Internet accounts for more than one hour and 40
minutes, more than twice as much as seven years ago. In parallel, monetisation of content
has improved significantly. European consumers spend on average more than 3 pence per hour
on media consumed online. That represents an increase of almost 140 percent since 2003. In
comparison: the average monetisation level per consumer is 15 pence per hour for film and
television content and roughly 20 pence for print products.



Creators also benefit from digitisation according to the authors, mostly in form of
easier access to distribution and new communication channels with audiences. In the music
industry, for example, the absolute value generation for artists and labels stayed
constant over the last 10 years. In contrast to a share of only 32 percent from a typical
CD sale, they enjoy a 66 percent share of a regular download, because margins for
production, distribution and retail are minimised in this model.



"Consumers and creators are the great beneficiaries of digitisation in the creative
sector," says Hannes Gmelin, principal and digital media expert from Booz. "But companies
in the creative industries can also thrive as long as they are able to create relevant
consumer experiences and focus on the two growth areas digital and consumer-paid content."



For the European market, the study comes to similar conclusions. Total revenue of the
focus industries increased by GBP 26 billion since 2001 to almost GBP 175 billion.
Twenty-five percent or GBP 43 billion of this revenue can be attributed to digital
businesses with a yearly growth rate of 11 percent, slightly more dynamic than the
respective U.K. trend. But with a total daily media consumption of only slightly more than
four hours and an Internet share of 1.3 hours, the European creative sector still has some
way to go to fully catch up in the digital environment.



Read the full report at:
http://www.booz.com/global/home/what-we-think/reports-white-papers/article-display/digital-future-creative-uk



About Booz & Company:



Booz & Company (booz.com) is a leading global management consulting firm focused on
serving and shaping the senior agenda of the world's leading institutions. Drawing on the
talents and insights of more than 3,000 people in 58 offices around the world, we help our
clients achieve essential advantage by working with them to identify and build the
differentiating capabilities they need to outperform.




Contact:
Martina Mazzon
Tel.: +44(0)7900-16-3251
E-Mail: martina.mazzon@booz.com
Internet: http://www.booz.com


Booz & Company


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