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UK COVID-19 and Media and In-Home Entertainment: A Year On Market Report
2021-06-11T04:04:01+01:00
OX1044897
2195
139334
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Report
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“There have been mixed fortunes for media markets since the outbreak of COVID-19, with some performing strongly, such as music and video subscriptions, while others, like print newspapers and magazines,…

UK COVID-19 and Media and In-Home Entertainment: A Year On Market Report

£ 2,195 (Excl.Tax)

Report Summary

The UK Media and In-home Entertainment market report identifies consumer attitudes towards media and entertainment post-COVID, and the impact of COVID-19 on media and in-home entertainment in the UK. This report covers the market size, market forecast, market segmentation and industry trends for the Media and In-home Entertainment Market in the UK. 

Current Market Landscape 

Consumer media spending has generally been fairly stable in recent years, with the positive trend in video streaming cancelled out by reduced spending in other markets, such as newspapers. The COVID-19 pandemic has furthered this dynamic, with TV viewership surging in 2020 and early 2021 as lockdowns and the cancellation of most social events resulted in more people staying home to watch television or digital media.

  • 25% of people expect to spend more time watching TV/films post-pandemic than they did before the outbreak (up to 39% among Gen Z)
  • Consumer spending on media declined only marginally in 2020, by 1.1% to £18.5 billion.
  • Some 29% of people expect to limit their non-essential spending more post-pandemic compared to before the outbreak, while only 11% expect to limit their non-essential spending less.
  • 24% of consumers were spending more on books than they typically did in a month prior to the pandemic.

The pandemic has had a varied impact on media markets, with the video and music subscription market having a boot in subscriptions, while print magazines and newspapers were hit hard. However, physical book sales have been an exception to the trend away from physical media, with the book market performing strongly despite the difficult retail environment.

Future Market Trends in Breakfast Cereals 

Working from home and other long-term changes to people’s habits and lifestyles will continue to prove a challenge for print newspapers and magazines. However, this change also creates new opportunities in other markets. One of the biggest concerns across media markets will be the level of disposable income people have as they economy recovers, especially if many will be inclined to prioritise out-of-home leisure activities.

Throughout the pandemic, the digital subscription model has come further to the fore for a variety of media content, from music to newspapers. Digital subscription and direct payment options will be even more central to many media markets going forward. The pandemic has also broadened the use of digital features, such as virtual events, livestreaming, and voice commands, presenting new opportunities for the market.

Read on to discover more details or take a look at all of our UK Media, Books and Stationary market research.

Quickly understand

  • The impact of COVID-19 on the media and in-home entertainment market.
  • How the pandemic will shape consumers’ behaviour.
  • The impact of COVID-19 on the time people have spent doing media activities.
  • The impact of COVID-19 on the amount people have spent on media content.
  • People’s expected media habits once COVID-19 is no longer a concern.

Covered in this report

Brands: Waterstones, Zoom, TikTok, Snapchap, Instagram, Sky, Facebook, Spotify, Apple Music, Netflix, Disney+, PlayStation, Xbox (Microsoft), Twitter, Discord, Clubhouse, OnlyFans, Amazon.

Expert analysis from a specialist in the field

This report, written by Rebecca McGrath, a leading analyst in the Media sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

There have been mixed fortunes for media markets since the outbreak of COVID-19, with some performing strongly, such as music and video subscriptions, while others, like print newspapers and magazines, have struggled. One overall long-term impact across markets is likely to be the increased importance of digital subscriptions.
Rebecca McGrath
Senior Media Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • The Market
    • Impact of COVID-19 on media
      • Figure 1: Impact of COVID-19 on media, in short, medium and long term, 8 May 2021
    • Consumer media spend falls just over 1% in 2020
      • Figure 2: COVID-19 scenario forecasts for consumer media spend, 2015-25
    • The Consumer
    • Change in commuting habits will have long-term implications for media markets
      • Figure 3: Expected behaviour after COVID-19 pandemic, 18 February-2 March 2021
    • Plans to limit non-essential spending could reduce willingness to purchase media content
      • Figure 4: Expectation of limiting non-essential spending, 18 February-2 March 2021
    • TV viewing soars during 2021 lockdown
      • Figure 5: Media activities following COVID-19 outbreak, 18 February-2 March 2021
    • Pandemic accelerates role of social commerce
      • Figure 6: Shopping via social media after COVID-19 outbreak, 18 February-2 March 2021
    • Fears for books market prove unfounded
      • Figure 7: Expenditure on media during lockdown, 18 February-2 March 2021
    • Young people expect their social media use to be higher post-pandemic
      • Figure 8: Media activities post-COVID-19 pandemic, 18 February-2 March 2021
  3. Category Winners and Losers

    • Winners
    • Video subscription streaming services are major winners as people hoover up TV content
    • Competition between services is set to ramp up
    • Social media use surges aiding success of newer players
    • The resilience of books highlighted by the pandemic
    • People will return to bookstores
    • Losers
    • Newspapers and magazines struggle as print declines are accelerated by lifestyle changes
    • Capitalising on core readers
  4. COVID-19 Consumer Timeline

    • Phase 1 – January-March: Consumers go into lockdown
    • Phase 2 – March-June: Adapting to life in lockdown
      • Figure 9: Recorded daily number of confirmed cases of COVID-19 and deaths registered as relating to the virus, 30 January-31 August 2020
    • Phase 3 – June-September: Emerging from the initial lockdown
    • Phase 4 – September-December: Rise of the next wave
      • Figure 10: Recorded daily number of confirmed cases of COVID-19, 30 January 2020-28 March 2021
    • Phase 5 – January-March: Winter lockdown and vaccine rollout
      • Figure 11: Cumulative number of first and second vaccines delivered in the UK, 10 January-31 March 2021
    • Phase 6 – March onwards: The roadmap out of lockdown
  5. The Post-pandemic Outlook for Media

    • Digital subscription model will play a greater role across media sectors
    • Video calling and livestreaming to remain further integrated into people’s lives
    • Social media platforms to regulate content more
  6. The Economic Impact

    • A record drop in economic activity…
      • Figure 12: Annual percentage change in GDP, 2007-25 (forecast)
    • …as COVID-19 restrictions caused a severe fall in spending
    • Consumer spending is heavily dependent on the path of the pandemic
      • Figure 13: Household consumption index, 2019-25 (scenario forecasts)
    • Furloughs have saved millions of jobs…
      • Figure 14: Number of employments furloughed, time series, March 2020-February 2021
    • …but unemployment is forecast to rise when state support ends
      • Figure 15: Quarterly unemployment rate, Q1 2008-Q1 2026 (forecast)
    • Under-25s have taken the brunt of COVID-19 job losses
      • Figure 16: Change in number of employees on payroll, by age, February 2021 vs February 2020
  7. Market Size and Performance

    • Impact of COVID-19 on media
      • Figure 17: Impact of COVID-19 on media, in short, medium and long term, 8 May 2021
    • Consumer media spend falls just over 1% in 2020
      • Figure 18: UK consumer spend on media, 2015-20
    • People have spent more on streaming music and video…
    • …but spent less on physical media
    • Drops in advertising spend in 2020 impact media markets
  8. Market Forecast

    • Mintel expects a return to growth in media spend in 2021
      • Figure 19: UK forecast for consumer spend on media, 2015-25
    • The pandemic will have accelerated trends towards spend on digital media
      • Figure 20: UK forecast for consumer spend on media, 2015-25
  9. COVID-19 Scenario Performance

    • Mintel’s approach to predicting the impact of COVID-19
    • Fundamental differences in how COVID-19 is affecting consumer markets
    • The risk of vaccine-resistant strains of COVID-19 adds uncertainty
      • Figure 21: COVID-19 scenario forecasts for consumer media spend, 2015-25
    • Different COVID-19 scenarios will have a limited impact on overall media spend
    • COVID-19 market disruption: risks and outcomes
      • Figure 22: Summary of Mintel scenario expectations and the impact on media, May 2021
  10. Consumer Concerns over the Impact on Health

    • Exposure anxieties align with case numbers
    • : Figure 23: Mintel COVID-19 exposure anxiety and lifestyle impact index, 28 February 2020-12 March 2021
      • : Figure 23: Mintel COVID-19 exposure anxiety and lifestyle impact index, 28 February 2020-12 March 2021
    • Exposure anxiety typically higher among over-55s
      • Figure 24: Proportion of adults indicating higher levels of anxiety (‘4’ or ‘5’) towards being exposed to the coronavirus, by age, 28 February 2020-26 March 2021
    • Middle-age band fear transmitting virus
  11. Consumer Concerns over the Impact on Lifestyles

    • Concerns about lifestyles impact outweigh exposure fears
    • Consumers react to unprecedented lifestyle restrictions
      • Figure 25: Mintel COVID-19 exposure anxiety and lifestyle impact index, 28 February 2020-12 March 2021
    • Lifestyle impact concerns high across all age groups
      • Figure 26: Proportion of adults indicating higher levels of anxiety (‘4’ or ‘5’) about how the outbreak could impact their lifestyle, by age, 28 February 2020-26 March 2021
  12. Impact on Household Finances

    • Financial wellbeing has hit new heights despite the crisis…
      • Figure 27: The financial wellbeing index, January 2015-March 2021
    • …but many still feel worse off than a year ago
      • Figure 28: Changes in household finances, January 2015-March 2021
    • One in six have been furloughed at least once
      • Figure 29: Impact of COVID-19 on employment and working patterns, February 2021
    • Income trends point to a two-track crisis and recovery
      • Figure 30: Impact of COVID-19 on personal income, February 2021
    • Cuts to discretionary spending have kept household finances afloat…
      • Figure 31: Impact of COVID-19 on household debts, February 2021
    • …and led to a record savings boost
      • Figure 32: Impact of COVID-19 on the value of savings in different products, February 2021
    • Most are optimistic about the year ahead…
      • Figure 33: The financial confidence index, January 2015-March 2021
    • …and looking forward to getting back to experiences
      • Figure 34: Financial priorities when COVID-19 is no longer a concern, February 2021
  13. How the Pandemic Shaped Consumer Behaviour

    • Change in commuting habits will have long-term implications for media markets
    • Working from home more opens door for greater voice control use
      • Figure 35: Expected behaviour after COVID-19 pandemic, 18 February-2 March 2021
    • Looking after mental health has become a greater priority
    • Many are concerned about the impact of social media use on mental health
    • Less acceptance of harmful content and bullying
      • Figure 36: Priority given to looking after mental health following pandemic, 18 February-2 March 2021
    • Plans to limit non-essential spending could reduce willingness to purchase media content
      • Figure 37: Expectation of limiting non-essential spending, 18 February-2 March 2021
  14. Impact of COVID-19 on Media Behaviour

    • TV viewing soars during 2021 lockdown
    • Major sporting summer to keep people glued to the TV
      • Figure 38: Media activities following COVID-19 outbreak, 18 February-2 March 2021
    • More than one in three people have been using social media more
    • High social media use and shared pandemic experience have provided useful backdrop for new social media players
    • Social media platforms explore more payment options for users
    • Pandemic accelerates role of social commerce
      • Figure 39: Shopping via social media after COVID-19 outbreak, 18 February-2 March 2021
    • One in four increase time playing video games
    • Console market and social media platforms boosted by increase in gaming
  15. Impact of COVID-19 on Media Expenditure

    • Fears for books market prove unfounded
    • Independents have been hardest hit by store closures during lockdown
      • Figure 40: Expenditure on media during lockdown, 18 February-2 March 2021
    • People boost spend on TV
    • Netflix’s streaming crown could be under threat
      • Figure 41: Media subscriptions, December 2017-20
    • Many pay more for music as listening habits change
    • Music streaming services improve audio quality to attract subscribers
    • More podcasts are being placed behind paywalls
    • Parents of young children have valued audio content during lockdown
      • Figure 42: Expenditure on media content compared to before the COVID-19 pandemic, by age of children in household, 18 February-2 March 2021
  16. Media Activities Post-pandemic

    • The pandemic could have further strengthened attachment to TV
    • TV production ramps up to entice viewers with exciting new content
      • Figure 43: Media activities post-COVID-19 pandemic, 18 February-2 March 2021
    • Video calling fatigue will limit its role post-pandemic
    • Making video calling more relaxing
    • Young people expect their social media use to be higher post-pandemic…
    • …but some social media users are turning away
      • Figure 44: Use of social media post-pandemic, by generation, 18 February-2 March 2021
    • The pandemic has boosted inclination to read books…
    • …but not magazines
      • Figure 45: Time expected to spend reading magazines post-pandemic, by age of children in household, 18 February-2 March 2021
    • Newspapers should focus on capitalising on core readership rather than online reach
  17. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  18. Appendix – Central Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 46: UK forecast for consumer spend on media, 2015-25
    • Market drivers and assumptions
      • Figure 47: Key drivers affecting Mintel’s market forecast, 2020-24 (prepared 12 March 2021)
    • Forecast methodology
  19. Appendix – COVID Scenario Performance Methodology and Assumptions

    • Scenario performance
      • Figure 48: COVID-19 scenario forecasts for media, 2015-25
    • Rapid COVID recovery, central and extended COVID disruption scenarios outline
    • Scenario methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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