This report on the digital transformation of the creative industries in the UK was produced by Enders Analysis and research partner Bain & Company, to support the Creative UK event organised by Enders Analysis and held at the BT Centre on 18 March 2104. The event is sponsored by BT, Enders Analysis, Bain & Company, Powerscourt and Shine Group.
The UK’s rate of business creation since 2010 has been especially strong relative to other major economies, backed by a solid trend to self-employment. Business creation in the creative industries – music, film, television, advertising, the arts, book and newspaper publishing - has been a major contributor, up 17% since 2010.
Underpinned by a generation of investment in broadband, digital technology is changing how many creative-sector companies produce and distribute products. But experiences vary widely:
- For advertising and marketing companies, the transition has had a benign impact on revenue; online’s share of total advertising was at 36% in 2012, placing the UK in the vanguard of digital advertising
- Television has remained relatively resilient to disintermediation by the internet and TV remains the single biggest advertising medium
- Consumer-facing newspapers have undergone a painful transition as pennies from digital replace pounds from print and ad sales
- Recorded music sales halved in the decade to 2013, but digital accounted for 50% of revenues in 2013, and the corner has been turned; artist management is being transformed by the use of online media
- New online pure play businesses have sprung up, like Rightmove and Zoopla Property Group, AutoTrader, LoveFilm and Spotify
- The crafts industries have been transformed by online marketplaces like Etsy, which allow them to serve their customers wherever they may be
- YouTube is emerging as an important outlet for UK creative talents