Media industry overview
UK media continues to play a leading role on the international stage
The UK media industry is a diverse sector, a significant contributor to the economy and projected to grow to a staggering £121bn by 2028.
As we explored in our 2024 industry outlook, it is imperative that the UK continues to invest in and grow the sector to meet the demands of tomorrow. The UK media industry continues to show its resilience and adaptability, but it must also embrace technological advancements to keep pace with evolving demands and expectations.
The UK media industry is a world leader, but it is essential that it remains an attractive place for businesses to call home. So, what challenges and opportunities lie ahead?
Our latest survey of 250 UK media business leaders—spanning agencies, television, gaming, audio and publishers—offers a window into how companies plan to stay ahead in 2025 and beyond.
Is optimism on the rise for UK media businesses?
How optimistic/pessimistic do you feel now about the future of your business?
The past year has been marked by significant change, uncertainty and economic volatility. While our latest survey indicates a rise in short-term optimism among business leaders compared to 2024, where only 21% felt very optimistic about the year ahead, this confidence appears to wane when respondents consider the longer-term outlook.
Despite increasing global instability and mounting macroeconomic pressures, highlighted by major players like Netflix and Amazon cutting spend and shifting focus to core profitability, optimism has improved over the past six months. It is also interesting to compare our survey results from our 2024 survey, where we found that only 59% were optimistic about the next 12 months, compared to 55% when looking longer term.
This sentiment reflects a broader trend among businesses adopting a “back to basics” approach, prioritising profitability and cost reduction. However, the longer-term outlook is more cautious: the proportion of respondents feeling very optimistic drops from 42% to 33% when looking beyond the 12-month horizon, suggesting that ongoing market challenges may temper future confidence.
Media businesses continue to experiment with generative AI… Although with caution
The impact of generative AI (GenAI) on the media industry cannot be underestimated. It’s one of the most transformative technologies of our time and, coupled with changing consumer demands, is forcing business leaders to reconsider how best to harness its potential, with some sectors like gaming being more comfortable using it compared to others.
What is the current status of generative AI within your business?
In last year’s survey, only 16% of respondents were actively using GenAI. That number has doubled in 2025, reflecting a clear shift in adoption. Although there is still a nervousness around what GenAI means for the media industry, 48% of respondents feel it will enhance their business, significantly more than the 11% who see it is a potential threat. Initiatives like the ‘Make it Fair’ campaign should help combat some of the negativity associated with the technology and protect valuable intellectual property.
It’s clear that the media industry is on the cusp of a transformative shift, particularly in how AI tools are integrated into everyday operations. Reflecting on the rapid developments in the first half of 2025, it’s interesting to picture what will unfold in the next six months. As many media companies sharpen their focus on profitability, AI is no longer a novelty—it’s a necessity. With the rise of companies like Deepseek and the continued evolution of GenAI, artificial intelligence is becoming deeply embedded into business operations.
However, this widespread adoption brings both opportunities and vulnerabilities. While AI can streamline workflows and drive efficiencies, it also raises concerns around limiting human creativity and sharing false information. Governments are responding, with AI at the centre of the UK government's strategy to drive economic growth, the Artificial Intelligence (Regulation) Bill being a “renewed attempt” to introduce AI legislation in the UK and the EU’s Artificial Intelligence Act acting as the first comprehensive legal framework for AI.
As AI becomes mainstream, the question isn’t just how media organisations will adapt, but also how legislation will evolve to protect the integrity of the industry.
How much do you expect generative AI to change your business, if at all?
As consumer demand shifts toward immersive storytelling, on-demand access and personalised entertainment, media businesses stand to benefit significantly from technologies that unlock these experiences. To stay agile and responsive to evolving audience expectations, deploying GenAI in the right areas will be critical.
Out of the 250 media organisations surveyed, only 2.8% have no plans to use GenAI. The top three areas where businesses plan to implement the technology are:
Although there are many stories in the press around the impact of GenAI on the content production and marketing side (not forgetting to mention the Hollywood writers’ strikes as well), 37% of respondents plan to use GenAI to help with marketing and sales. However, human creativity is irreplaceable. Most businesses are looking to GenAI not to create content but to enhance it, by suggesting relevant, tailored experiences that improve how audiences engage with media.
How is the first Labour government in 14 years supporting creative industries?
Compared to 19% last year, 55% of our respondents agreed that the UK government is supportive of the creative industries. This is a huge difference and likely has to do with the government naming the creative industries as one of its eight growth-driving sectors in its Industrial Strategy during the 2024 Autumn Budget.
To what extent do you agree or disagree with the following statement 'The UK Government supports the industries' (i.e. tax regime, regulatory burden, ease of funding etc?)'
The bigger picture – a focus on D&I and ESG
Improving diversity and inclusion (D&I) seems to have become more of a focus for businesses. Our survey indicated that 91% of businesses currently have policies in place to ensure that D&I is being discussed at a senior level, a marked improvement from 59% in our 2024 survey. This is an encouraging finding and shows that a lot of the hard work and initiatives are paying off.
Another positive statistic: all respondents reported ethnic minority representation on their leadership teams, an improvement on last year where over 3% either had none or were unsure.
The media and creative industries continue to prioritise D&I, which is encouraging given the general cooling on D&I initiatives in the US agenda despite mounting pressures there to push it lower down the list.
Environmental, social and governance (ESG) remains an important area to not lose sight of and another area where there is a vast improvement from our 2024 survey. Last year we were surprised to see that 31% believed little or no progress was being made by the sector group to effectively develop and implement ESG policies, however our 2025 results only showed 6% felt this way.
By adopting ESG practices, media companies demonstrate their commitment to sustainability, ethics, and transparency—building trust and meeting the rising demand for responsible investment. ESG is a strategic path to long-term success in a socially and environmentally conscious market.
David Blacher
Head of Media and Technology
Over the past six months, we've witnessed unprecedented changes on the global stage, driven by shifts in government and mounting economic pressures across the industry. Against that backdrop, it is great to see a sector that is moving forward and still feeling positive despite headwinds.
Over the past six months, we've witnessed unprecedented changes on the global stage, driven by shifts in government and mounting economic pressures across the industry. Against that backdrop, it is great to see a sector that is moving forward and still feeling positive despite headwinds.