Motion Pictures, Music & Television: Reading Sample

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Featuring an exclusive
Brexit analysis

Motion Pictures, Music & Television


- SIC 59 -
Statista Industry Report - UK

May 2019
Agenda

01 Industry insights 04 Employees and salaries


▪ Overview ▪ Employment
▪ Brexit analysis ▪ Wages
▪ SWOT analysis

02 Financial numbers 05 European comparison


▪ Industry turnover ▪ Turnover
▪ Gross valued added ▪ Enterprises and employment
▪ Consumer spending

03 Companies 06 Appendix
▪ Top companies ▪ Data description and methods
▪ Business demographics ▪ Glossary
▪ Authors

2
The UK Industry Report

Dear reader, Executive summary


▪ The long-term impact of a WTO no-deal Brexit is expected to be
Find out more about the Motion Pictures, Music & Television industry in negative in this industry
our report focusing on key industry figures such as the financial
numbers, companies, employment and salaries. ▪ Industry turnover to increase by 4.5% p.a. from 2018 to 2023

With this report, we provide a comprehensive overview of the current ▪ Motion picture, video and television programme production
state of the Motion Pictures, Music & Television industry as well as a contributed 0.8% to the gross value added
prognosis for the upcoming years. In addition to all relevant market
▪ Number of enterprises increased by 7.3% annually from 2010 to 2017
figures like trade trends, top companies and workforce, we provide
insights into the potential impact of Brexit on the industry’s turnover ▪ With a share of 7%, professional, scientific and technical activities had
and the implications for trade with the European Union. the 5th highest share
Gain insight into the major trends in the Motion Pictures, Music & ▪ The number of full and part-time employees decreased by -3.8% p.a.
Television industry in order to assess the risks and opportunities from 2011 to 2018
relevant for domestic and international business.
▪ Working hours in the industry are slightly below the sector level in
We wish you a valuable and informative reading experience. 2018

▪ With £27.8bn, the United Kingdom generated the highest turnover in


2017

3
Industry definition

Section 59: Motion Pictures, Music & Television Industries included in this section
This division includes production of theatrical and non-theatrical motion ▪ ISIC code 59.1: Motion picture, video and television programme
pictures whether on film, video tape or disc for direct projection in production (post-production, distribution) activities and motion
theatres or for broadcasting on television; supporting activities such as picture projection activities
film editing, cutting, dubbing etc.; distribution of motion pictures and
other film productions to other industries; as well as motion picture or ▪ ISIC code 59.2: Sound recording and music publishing activities
other film productions projection. Buying and selling of motion picture
or other film productions distribution rights is also included.
This division also includes sound recording activities, i.e. production of
original sound master recordings, releasing, promoting and distributing
them, publishing of music as well as sound recording service activities in
a studio or elsewhere.

4 Source: Office for National Statistics


INDUSTRY
INSIGHTS
▪ Overview

▪ Brexit analysis

▪ SWOT analysis

5
Motion Pictures, Music & Television in the UK
Overview: key figures at a glance

Financial numbers Companies Employees and salaries

£31bn 26,361 11,460


Turnover Number of enterprises Number of employees
in 20181 in 2017 in 2017

4.5% 3,930 £35,706


Turnover CAGR2 Number of enterprise Annual mean wage
2018–2023 births in 2017 In 2018

33.2
Average weekly hours
worked in 2018

1: Statista estimate 2: CAGR: Compound Annual Growth Rate / average growth rate per year
6 Source: Office for National Statistics 2018, Statista Top List 2019
Brexit timeline
Brexit analysis: timeline (1/2)

Brexit timeline
Negotiations between
the UK and the EU ▪ In June 2016, the UK public voted to leave
the EU (51.9% leave, 48.1% remain).

▪ David Cameron resigned as Prime


Minister, and Theresa May was appointed
as new PM.
No deal Deal
▪ In March 2017, the UK government
triggers Article 50 – the European Union
Notification of Withdrawal Act.
▪ In June 2018, the EU parliament approved
the withdrawal act.

▪ All PM’s deal proposals were rejected by


the House of Commons between January
Vote in the British
and March 2019.
parliament
▪ PM asked for a postponement of Brexit.
The EU agreed to a Brexit extension until
31st October 2019.
Reject
▪ A no-deal Brexit scenario is still a default
outcome if no agreement is reached.
Orderly No-deal
Accept Postponement We are here
Brexit Brexit

7 Source: Statista 2019


Options after the postponement
Brexit analysis: timeline (2/2)

The UK participates in the elections for


Brexit postponement
the European Parliament (23rd May)

The UK parliament agrees on the The UK would have to


Yes No
amended deal before 23rd May leave EU on 1st June

The EU New Brexit deadline:


accepts the 31st October
deal

Yes No

Orderly PM’s1 EEA2 AFT3 Negotiate a New elections/


Unclear No deal
Brexit deal agreement agreement new deal referendum

Further information on next page Unclear scenarios

1: Prime Minister’s (PM) deal 2: European Economic Area (EEA) agreement 3: Average Foreign Trade agreement
8 Source: Statista 2019
Negative long-term economic effects expected in all
scenarios
Brexit analysis: potential scenarios

Scenario 1: Prime Minister’s (PM) deal Scenario 3: Average Foreign Trade (AFT) agreement
▪ The aim is for a free trade area for goods, giving frictionless border ▪ HMG expects tariffs to be equivalent to, on average, 5% to 11% of the
access. However, the UK would seek to have a separate arrangement value of trade.
for services.
▪ It would also introduce Rules of Origin. Stricter migration policies
▪ The UK acknowledges that it cannot have all the benefits of the single could reduce the flow of EU workers, while additional barriers on
market without its obligations; it is thus necessary to create a bespoke commercial association, digital and financial services may occur.
new arrangement.
▪ Analysis suggests a GDP decrease of 6.4%1 relative to underlying
▪ Analysis suggests a GDP decrease of 3.1%1 to 1.9%1 relative to growth and an average reduction for manufactured goods and
underlying growth. services of close to 8% and 5% relative to underlying output
respectively.

Scenario 2: European Economic Area (EEA) agreement Scenario 4: No deal


▪ Gives close to full access to the single market but entails compliance ▪ It would be based on non-preferential World Trade Organization
with EU legislation without the opportunity to influence. (WTO) terms, introducing Most Favoured Nation (MNF) tariffs and non-
tariff barriers (NTBs).
▪ Increases costs for customs processes but maintains free movement
of goods, persons, services and capital and allows some leeway in ▪ Analysis suggests a GDP decrease of 10.7%1 to 8.0%1 relative to
non-EU trade agreements. underlying growth. Manufacture of goods and services are expected
to experience a decrease of 12% and 8% relative to underlying output
▪ Analysis suggests a GDP decrease of 2.3% relative to underlying respectively.
growth over the next 15 years. Likewise, an average drop of 1.5% in
real wages is expected. Average reduction of close to 2% relative to
underlying output for manufactured goods.

1: Assuming zero net inflows of EEA workers


9 Source: HMG EU Exit: Long-term economic analysis 2018
In a no-deal scenario, the highest tariffs are expected
to be imposed on the sector of agriculture and food
Brexit analysis: impact of a no deal scenario (1/2)

Gross value added by sector group in 2017 Potential barriers on EU imports from the UK
Services Manufactured of goods Networks Financial services Agriculture and food Dwellings1
20%

9% 15%
13%
12%
8% 10%
9%

3%
7% 1%
0% 0%
Tariff NTBs2
2%
Tariffs are a tax or duty to be paid on a particular product that is
imported or exported. These add directly to the costs of trade,
60% increasing the price of traded goods.
14%
Non-tariff barriers (NTBs) are administrative, technical and regulatory
obstacles to trade. Some NTBs, such as customs procedures, can be
incurred at the border, while others can be incurred “behind the border”,
such as costs associated with the recognition of professional
qualifications. NTBs are particularly important in influencing businesses
ability and willingness to trade.

1: Not largely traded 2: Average of non-trade barriers


Note: This does not include migration or regulatory flexibility effects.
10 Source: EU Exit: Long-term economic analysis 2018
The sector of manufactured goods is expected to
experience the highest loss impact of a no deal
Brexit analysis: impact of a no deal scenario (2/2)

Impact on gross value added over the next 15 years


Average impact Impact range

-14%

-12% -12%
-11%
-10%
-9%
-8% -8%

-6%

-4% -4%

-2%

Manufactured goods Agriculture and food Services Financial Services Networks

Note: The benefits of new trade deals with countries outside the EU are captured here. This does not include migration or regulatory flexibility
effects.
11 Source: EU Exit: Long-term economic analysis 2018
Get more insights in the Statista Brexit Factbook
Brexit analysis: Brexit Factbook

Referendum:
▪ 51.9 % leave vote
48.1 % remain vote

▪ 33,551,983 votes
Economic effects:
▪ Pound down 7% against the Euro the day after the Brexit vote
▪ Predicted loss to GDP by 2020 in case of no-deal Brexit: UK -3.3%, EU
-1.5%

Parliamentary process:
▪ 320 votes needed for a Brexit deal to pass through parliament
Content:
▪ Comprehensive overview with the most important facts & figures
▪ Entire process from the lead-up to the EU membership referendum
▪ Economic, financial & political ramifications with regular updates

Find out more on https://www.statista.com/study/58259/the-brexit-factbook/

12
Motion pictures, music & television
SWOT analysis

Strengths Weaknesses Opportunities Threats


▪ The growing popularity of ▪ The UK film industry is very ▪ Video-on-demand in the UK is ▪ Piracy is a major threat to the
independent UK films such as homogenous at a time when the strongest sub-sector, industry, with over 30% of the
Darkest Hour and Johnny the country’s population is ranking second in a global UK population active in some
English Strikes Again as well becoming increasingly comparison, with only the US form of piracy, either by
as sustained investment in diverse. Not only are ethnic ahead. With companies like streaming content online or
high-end television and film minorities such as Black and Netflix and Amazon investing buying counterfeit DVDs.
productions are among the Asian people not given a significant sum to make web
key drivers of industry growth. sufficient employment, but series, the opportunities for ▪ The UK film industry heavily
there is also not enough growth are numerous. relies on foreign talent, a
▪ Benefits derived from the content tailored for them. majority of which comes from
English language, large tax This is resulting in a loss of ▪ Digital music revenues the EU. Brexit threatens to
breaks, high-quality studio revenue-earning surpassed those of traditional disrupt this as stricter working
facilities and access to many opportunities. music formats for the first rules are enforced.
world-class specialist support time in 2015. The growing
facilities make the UK a ▪ US studios are now popularity of digital channels ▪ The UK film industry, which
preferred destination for film- dominating the country’s box such as YouTube and Spotify currently benefits from
making. office receipts with a share of augur well for the industry. various EU training and
over 80%, and domestic support funds, such as the
▪ The weakened pound companies are facing ▪ Having established a strong European Regional
following the EU referendum dwindling home hold in the EU, British Development Fund (ERDF),
has lured foreign film and TV entertainment returns. filmmakers are now looking could lose access to this
producers to the UK. for opportunities in China, funding after Brexit.
Canada and the US.

13 Source: British Film Institute 2019, Screen Daily 2018, Sky News 2018, Stephen Follows 2018, The Guardian 2018, Statista 2019
FINANCIAL
NUMBERS
▪ Industry turnover

▪ Gross value added

▪ Consumer spending

14
The long-term impact of a WTO no-deal Brexit is
expected to be negative in this industry
Industry turnover (1/2)

Turnover in billion £
Todays’ arrangement Brexit – no-deal scenario Impact
40.5
38.8
37.0 -4.7%
35.1
33.1
31.0 38.6
29.7 37.2
35.8
34.3
25.7 32.7
23.1

17.6 18.4
16.0 16.9

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Statista estimate

The World Trade Organization (WTO) no-deal Brexit scenario is defined as the absence of an agreement between the UK and the EU. In these
conditions, it is assumed that both parties would trade on non-preferential WTO terms with tariffs set at EU-applied Most Favoured Nation (MFN) rates.
MFN tariffs are estimated to be equivalent to 0%. Likewise, non-tariff barriers would be introduced, such as Rule of Origin and other customs costs,
which would be equivalent to, on average, 15% of the trade value. It is expected that the motion picture, video and television programme production,
sound recording and music publishing activities industry will experience an average decrease of 8% relative to underlying output over the next 15 years.

15 Source: Office for National Statistics 2018, Statista 2019, HMG EU Exit: Long-term economic analysis 2018
Industry turnover to increase by 4.5% p.a. from 2018
to 2023
Industry turnover (2/2)

Turnover forecast based on Brexit no-deal scenario in billion £


Motion picture, video and television programme production activities
Motion picture, video and television programme distribution activities
Motion picture, video and television programme post-production activities
+4.5%1
Sound recording and music publishing activities 38.6
37.2
Motion picture projection activities 35.8 1.8
34.3 1.8
32.7 1.8 3.6
1.7 3.5
31.0 1.7 3.4
+9.9%1 29.7 3.3 4.1
1.7 3.2 3.9
1.6 3.7
25.7 3.1 3.4
3.1 3.2
23.1 1.6 2.9
2.5 3.0 10.7 11.2
1.6 10.1
2.2 1.9 9.0 9.6
17.6 18.4 8.3
16.0 16.9 1.4 1.5 7.5
1.3 1.3 1.7 7.4
1.3 1.7 5.6
1.4 1.3 1.5
1.4 1.4 1.6
3.3 3.4
3.0 3.4
16.2 16.8 17.4 17.9
14.5 14.9 15.6
12.1 12.4
8.9 9.2 10.0 10.4

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Statista estimate

1: CAGR: Compound Annual Growth Rate / average growth rate per year
16 Source: Office for National Statistics 2018, Statista 2019, EU Exit: Long-term economic analysis 2018
Motion picture, video and television activities grew by
10%, which was faster than the industry average
Industry turnover: subcategory comparison

Growth vs turnover comparison


Growth in % 2017–20181 Industry average

11
10
9 Motion picture, video and television programme distribution activities
8
7
6
5
4
3 Motion picture projection activities Motion picture, video and television programme production activities

2 Industry average

1 Sound recording and music publishing activities

Motion picture, video and television programme post-production activities


-1
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000
Turnover in million £ in 20181

1: Statista estimate
17 Source: Office for National Statistics 2018, Statista 2019
With a £31 billion turnover, the industry ranked 3rd
place in 2018
Turnover: industry comparison

# Industry SIC Turnover in bn £ in 20181 Growth 2017-20181

1 Computer programming, consultancy and related activities 62 105.5 +4.7% ↑

2 Telecommunications 61 64.9 -0.8% ↓

Motion picture, video and television programme production,


3 59 31.0 +4.4% ↑
sound recording and music publishing activities

4 Publishing activities 58 21.6 +0.9% ↑

5 Programming and broadcasting activities 60 17.0 +5.6% ↑

6 Information service activities 63 15.3 +2.0% ↑

1: Statista estimate
18 Source: Office for National Statistics 2018
Motion picture, video and television programme
production contributed 0.8% to the gross value added
Gross valued added and trade: GVA (1/2)

Gross value added by industry group in 2017

Accommodation
and food service
activities, 4.2%

Education,
1.5%
Agriculture
Mining
1.3%

0.2%
19 Source: Office for National Statistics 2018
The GVA in the motion picture, video and television
programme activities industry increased by 9.5%
Gross valued added and trade: GVA (2/2)

Gross value added in billion £ Gross value added growth rate in %


Motion picture, video and television programme production act. Motion picture, video and television programme production act.
Rest of industries Information and communication
1,270 32.2
+5.5%1 1,202
1,150 27.7
1,096
1,010
920 942
21.1

15.6
99.2% 13.7
99.4% 99.3%
99.4%
99.5%
99.5% 99.5% 9.5
8.5
6.2 6.3 6.4
5.5
2.7 1.9
-0.9
0.5% 0.5% 0.5% 0.6% 0.6% 0.7% 0.8%
2011 2012 2013 2014 2015 2016 2017
2011 2012 2013 2014 2015 2016 2017

1: CAGR: Compound Annual Growth Rate / average growth rate per year
20 Source: Office for National Statistics 2018
Revenue is expected to grow to £1,946 million by
2023
Consumer spending: Digital Market Outlook - Video-on-Demand & Digital Music (1/2)

Revenue in million £ Average revenue per user in £


Music Streaming Music Downloads Video Streaming (SVoD) Video Downloads (EST) Pay-per-View (TVoD)

+4.0%1 1,946 41

234 39
1,603 156 2018 44
177
13
154
25
784

708 47

123 40

2023 38
140
649 12
424 32

2018 2023

1: CAGR: Compound Annual Growth Rate / average growth rate per year
Note: See appendix for market, segment and sub-segment definition
21 Source: Statista Digital Market Outlook 2019
With revenues of £1,603 million, the UK ranked 4th in
2018
Consumer spending: Digital Market Outlook - Video-on-Demand & Digital Music (2/2)

Countries and territories ranked by revenue in million £ CAGR1


2018–23
2018 2023

United States 14,157 16,535 3.2%

China 2,337 3,006 5.2%

Japan 1,888 2,350 4.5%

United Kingdom 1,603 1,946 4.0%

Germany 1,542 1,920 4.5%

France 751 874 3.1%

Canada 621 758 4.1%

Italy 570 627 1.9%

South Korea 568 768 6.2%

Australia 449 544 3.9%

1: CAGR: Compound Annual Growth Rate / average growth rate per year
22 Source: Statista Consumer Market Outlook 2019
COMPANIES
▪ Top companies

▪ Business demographics

23
Sky plc registered the largest revenue in 2018
Top companies

Rank Company Logo Total revenue in million £ in 2018 Employees Listing ID


in 2018

1 Sky plc 13,585 31000 BSY (London)

2 BBC Group 5,063 21583 -

3 ITV plc 3,211 6280 ITV (London)

4 Channel 4 960 858 -

Note: Total revenue includes all revenues generated by the company in various industries and across the world
24 Source: Statista 2019
Number of enterprises increased by 7.3% annually
from 2010 to 2017
Business demographics: number of enterprises (1/2)

Number of enterprises in thousand

25,940 26,361

+7.3%1 24,206

22,033
20,506
18,631
17,239
16,101

2010 2011 2012 2013 2014 2015 2016 2017

1: CAGR: Compound Annual Growth Rate / average growth rate per year
25 Source: Office for National Statistics 2018
Most enterprises in the industry are in motion picture,
video and television programme production
Business demographics: number of enterprises (2/2)

Number of enterprises in 2017 Growth rate


2016-2017

Motion picture, video and television


19,190 1.7%
programme production activities

Sound recording and


3,387 4.7%
music publishing activities

Motion picture, video


and television programme 2,892 -2.4%
post-production activities

Motion picture, video and


619 0.5%
television programme distribution act.

Motion picture projection activities 273 7.9%

26 Source: Office for National Statistics 2018


The number of enterprise deaths was smaller than
the enterprises birth in 2017
Business demographics: birth and death rates (1/2)

Number of enterprise births and deaths in thousand


Births Deaths

4,390
4,095
3,930
3,515

2,740
2,530
2,120
1,810

2011 2013 2015 2017

27 Source: Office for National Statistics 2018


Enterprise deaths occurred mainly in motion picture,
video and television programme activities in 2017
Business demographics: birth and death rates (2/2)

Share of enterprise deaths in 2017 Survival of newly born enterprises


Motion picture, video and television programme activities Survived1 Dead
Sound recording and music publishing activities
9.1%

26.7%
39.7%
48.1%
54.6%

11%

91.9%

74.3%
61.3%
52.9%
46.5%

89%
2013 2014 2015 2016 2017

1: A business is deemed to have survived if having been a birth in year t and it is active in terms of employment and/or turnover in any part of
t+1
28 Source: Office for National Statistics 2018
EMPLOYEES
AND SALARIES
▪ Employment

▪ Wages

29
With a share of 7%, professional, scientific and
technical activities had the 5th highest share
Employment: share of employment

Share of employment in 2018

0.2% Human health & social work Manufacturing


3.7% 1.8%
15.2% Education Construction
Other Professional, scientific & admin. services Other services
10.2% 1.9% Public administration Electricity & gas
Industrial
sector Accommodation & food services Water supply
15.7% Transportation & storage Households
2.1%
Financial & insurance Mining & quarrying
14.5% Information & communication
Consumer Real estate
sector
Wholesale and retail trade;
15.0% 17.6% Professional
repair of motor vehicles
services
64.8% Arts & entertainment
Agriculture, forestry and fishing

1.4% 11.9%
3.7%
3.7%
5.4%
4.3%
4.6%

30 Source: Office for National Statistics 2018


Number of employees increased by 3.2% from 2010
to 2017
Employment: total employees (1/2)

Total number of employees in thousand


Male Female

+3.2%1
114.6
108.1 110.2
106.3
102.3
94.5
91.8 91.3
37.8% 40.8%
40.0% 42.9%
39.0%
39.0% 35.7%
41.0%

60.0% 62.2% 59.2%


61.0% 61.0% 64.3% 57.1%
59.0%

2010 2011 2012 2013 2014 2015 2016 2017

1: CAGR: Compound Annual Growth Rate / average growth rate per year
31 Source: Office for National Statistics 2018, Statista 2019
The number of full and part-time employees
decreased by -3.8% p.a. from 2011 to 2018
Employment: total employees (2/2)

Number of employees in thousand


Part-time jobs Full-time jobs

59.0 -3.8%1

49.0
45.0
41.0 42.0 42.0
40.0
37.0
48.0
35.0
29.0 35.0
33.0 30.0 33.0
29.0

13.0 14.0
11.0 10.0 9.0 10.0
8.0 8.0

2011 2012 2013 2014 2015 2016 2017 2018

1: CAGR: Compound Annual Growth Rate / average growth rate per year
Note: Only full and part-time jobs included
32 Source: Office for National Statistics 2018
Working hours in the industry are slightly below the
sector level in 2018
Employment: weekly hours worked

Annual average of weekly hours worked per employee


Motion picture, video and television programme production, Information and communication Private sector
sound recording and music publishing activities 35.8
35.6
35.3 35.4 35.3
35.2 35.1 35.1 35.1

33.9

33.4
33.3 33.2
33.1 33.0
32.6 32.6
32.3 32.3 32.4 32.3 32.3
32.1 32.1 32.1
32.0 32.1

2010 2011 2012 2013 2014 2015 2016 2017 2018

The average basic weekly working time in the motion picture, video and television programme production, sound recording and music publishing
activities industry was at 33.2 hours in 2018. In comparison, the overall information and communication sector had an average weekly working time of
35.3 hours.

33 Source: Office for National Statistics 2018


Female employees earned 5.6% less than male
employees in 2018
Wages

Annual mean wage1 in thousand £2


Average Male Female

-5.6%
39.1 38.5
36.3 36.7
35.8 35.2 35.7 35.7
34.2 34.7 34.7
32.6 32.1 32.5
31.7

2010 2012 2014 2016 2018

1: For all employees in the industry, including part-time 2: Current £, see glossary for differences between current and constant £
34 Source: Office for National Statistics 2018
EUROPEAN
COMPARISON
▪ Industry turnover

▪ Enterprises and employment

35
The United Kingdom and Western Europe have the
highest turnover
Industry turnover (1/3)

Annotation about the data in this chapter Turnover in billion £ in 20171


The data used in this chapter is based on the “Annual detailed 0 up to 0.5
enterprise statistics“ published by the Statistical Office of the European
Union (Eurostat). 0.5 up to 2.5
2.5 up to 15
The goal of this chapter is to give an overview about the status of the
industry in Europe. Due to a different survey method and the European More than 15
industry classification NACE2 the values might differ from values
n.a.
presented for the United Kingdom in previous chapters.

For NACE, turnover comprises the totals invoiced during the reference
period, and this corresponds to market sales of goods or services
supplied to third parties. It includes all duties and taxes on the goods or
services invoiced with the exception of the VAT invoiced to the customer
and other similar deductible taxes directly linked to turnover. It also
includes all other charges (transport, packaging, etc.) passed on to the
customer.

1: Bosnia and Herzegovina - value for 2016, Estonia - value for 2016 2: Nomenclature statistique des activités économiques dans la
Communauté européenne (statistical classification of economic activities in the European community)
36 Source: Statistical Office of the European Union (Eurostat) 2018
With £27.8bn, the United Kingdom generated the
highest turnover in 2017
Industry turnover (2/3)

Top countries by turnover in billion £ in 2017

Growth in 2016–2017

+1.2% +4.1% -13.7% -0.8% +12.0% -2.2% +5.6% +6.7% -17.3% -5.2%

27.8

11.3 10.0
4.6 4.6 4.1 3.0 2.0 1.5 1.2
United Germany France Spain Netherlands Italy Sweden Belgium Poland Austria
Kingdom

37 Source: Statistical Office of the European Union (Eurostat) 2018


The United Kingdom had the highest average
turnover per enterprise
Industry turnover (3/3)

Turnover growth, turnover in billion £ and average turnover per enterprise in million £ in 2017
Growth in % 2016–2017 Top countries average Value size is equal to £5 billion

15
Netherlands
10
Germany
Belgium
5 Sweden

Average Spain
0

-5 Italy United Kingdom


Austria

-10

France
-15
Poland
-20
0.0 0.1 0.2 0.3 0.4 0.5 0.6 1.0 1.1
Average turnover per enterprise in million £

Note: Only top countries by turnover in 2017 included


38 Source: Statistical Office of the European Union (Eurostat) 2018, Statista 2019
Among the top countries, the United Kingdom had
the largest number of enterprises in 2017
Enterprises and employment

Number of enterprises1 in 2016 No. of employees2 Average turnover per


in thou. in 20173 enterprise in m£4

United Kingdom 25,934 117.8 1.1

France 25,260 77.4 0.5

Netherlands 16,861 25.8 0.2

Sweden 12,404 16.2 0.2

Germany 10,630 76.0 1.0

Poland 8,153 15.2 0.2

Spain 7,723 32.8 0.6

Italy 7,266 25.4 0.6

Belgium 3,674 6.9 0.5

Austria 2,578 8.2 0.5

1: Enterprises that have been active during at least a part of the reference period 2: This is defined as the total number of persons working in
the observation unit as well as persons working outside the unit who belong to it and are paid by it 3: France - value for 2016 4: In 2016
Note: Only includes top countries by turnover in 2017
39 Source: Statistical Office of the European Union (Eurostat) 2018, Statista 2019
APPENDIX
▪ Data description and methods

▪ Glossary

▪ Authors

40
Methodology and data used in this report
Data description and methods (1/2)

Data sources
The Statista Industry Reports present quantitative data from various private and public sources of information. These sources include the Office for
National Statistics of the UK and Statista itself. The data sources are indicated in footnotes throughout the report.

Forecasts and estimates


Certain diagrams within this Industry Report include estimates or forecast values for the years 2018 to 2023. When necessary, missing data points in
time series are estimated by interpolation. Estimated values and their sources are indicated in footnotes throughout the report.

Current £
Values in this Industry Report are in current £. This reflects the value the currency has in a particular year. Current data series are influenced by the
effect of price inflation and differences in exchange rates, and the comparability of growth rates between countries is limited.

41
About the forecasting methods
Data description and methods (2/2)

Depending on the availability of data and the quality of the data time
range, the following methods were used to prepare forecasts: trend Forecasting
analysis (moving average analysis, second-order statistical smoothing methods
and multiplier analysis), linear regressions as well as subjective
estimates. These estimates reflect years of industry expertise and vast
know-how. Qualitative
Quantitative
time-series
Industry-specific sales, revenue and shipment calculations were made time-series analysis
analysis
according to the relevant economic and business indicators, such as:

▪ The general macro-economic developments within the economy Press reports,


(gross domestic product) Causal Trend industry expertise,
processes projections expert assessments,
▪ Foreign trade developments (import and export numbers) etc.

Second-order
Regression
statistical
analysis
smoothing

Moving
average
analysis

Multiplier
analysis

42
Glossary of terms
Glossary (1/2)

Brick and Mortar Store: Physical offline store that focuses Current £: Data reported in current £ reflect the value the
on traditional face-to-face sales. Opposite of an Ecommerce currency has in a particular year. Current data series are
shop. influenced by the effect of price inflation and differences in
exchange rates and the comparability of growth rates
Compound annual growth rate (CAGR): Measure of the
between countries is limited.
average growth rate per year over multiple time periods.
Gross value added: Value added is the net output of a
Constant £: Data expressed in constant £ show the data for
sector after adding up all outputs and subtracting
each year in the value of a particular base year. The base
intermediate inputs. It is calculated without making
year of each country's national accounts is country specific.
deductions for depreciation of fabricated assets or
Constant series are used to measure the true growth of a
depletion and degradation of natural resources.
series by adjusting for the effects of price inflation.
Most-favoured-nation (MNF): MFN means treating other
Consumer spending: Average per-capita spending of
people equally. Under the WTO agreements, countries
private households on durable and non-durable goods
cannot normally discriminate between their trading
which is influenced by various factors. Key determinants
partners. Grant someone a special favour (such as a lower
include income, household debt levels and consumer
customs duty rate for one of their products) and you have to
expectations.
do the same for all other WTO members.

43
Glossary of terms
Glossary (2/2)

NACE: acronym used to designate the various statistical SIC code: The UK Standard Industrial Classification of
classifications of economic activities developed in economic activities (SIC) is a five-digit classification providing
the European Union (EU) since 1970. the framework for collecting and presenting a large range of
statistical data according to economic activity.
Non-tariff barriers: administrative, technical and regulatory
obstacles to trade. Some NTBs, such as customs Tariffs: Taxes or duties to be paid on a particular product
procedures, can be incurred at the border, while others can that is imported or exported. These add directly to the costs
be incurred “behind the border”, such as costs associated of trade, increasing the price of traded goods
with the recognition of professional qualifications. NTBs are
Trade balance: net sum of a country's imports and exports
particularly important in influencing businesses’ ability and
willingness to trade. Turnover: defined as the total value of sales. This is
calculated by adding together the values of sales of goods
Revenue:. Revenue is cash receipts from taxes, social
purchased and resold without further processing, work done
contributions and other revenues such as fines, fees, rent
and industrial and non-industrial services rendered.
and income from property or sales.
World Trade Organization: only global international
Rule of Origin: criteria needed to determine the national
organization dealing with the rules of trade between nations.
source of a product. Their importance is derived from the
WTO agreements are negotiated and signed by the bulk of
fact that duties and restrictions in several cases depend
the world's trading nations and ratified in their parliaments.
upon the source of imports.

44
Overview of the UK Industry Reports (1/2)

Agriculture, Forestry & Fishing Manufacturing: Computers Car Dealers


(SIC A) & Electronics (SIC 26) (SIC 45)

Manufacturing: Food Manufacturing: Electrical Wholesale Trade


(SIC 10) Equipment (SIC 27) (SIC 46)

Manufacturing: Beverages Manufacturing: Machinery Retail Trade


(SIC 11) (SIC 28) (SIC 47)

Manufacturing: Fashion & Textiles Manufacturing: Automotive Retail: Food & Beverages
(SIC 13, 14, 15) Industry (SIC 29) (SIC 47.2)

Manufacturing: Chemicals Energy Supply Retail: Petrol Stations


(SIC 20) (SIC 35) (SIC 47.3)

Manufacturing: Pharmaceuticals Waste Management & Retail: Consumer Electronics


(SIC 21) Recycling (SIC 38) (SIC 47.4)

Manufacturing: Plastics & Rubber Construction Retail: Building & Home


(SIC 22) (SIC F) (SIC 47.5)

45
Overview of the UK Industry Reports (2/2)

Retail: Sports, Toys, Books & Music Restaurants & Nightlife Real Estate
(SIC 47.6) (SIC 56) (SIC 68)

Transportation: Land Publishing Rental & Leasing


(SIC 49) (SIC 58) (SIC 77)

Transportation: Water Motion Pictures, Music & Television Travel Agencies & Tour
(SIC 50) (SIC 59) Operators (SIC 79)

Transportation: Air Telecommunications Education


(SIC 51) (SIC 61) (SIC 85)

Warehousing & Storage IT & Information Services Health Care


(SIC 52) (SIC 62, 63) (SIC 86)

Postal & Courier Services Banking & Finance Arts, Entertainment &
(SIC 53) (SIC 64) Recreation (SIC R)

Tourism
Accommodation Insurance
(SIC 51.1, 55.1, 55.2, 56.1, 56.3,
(SIC 55) (SIC 65)
91, 92, 93)

46
About the Statista Global Consumer Survey

50+ 46 5,000+ 400,000+


topics & industries regions int. brands consumers
Marketing & Finance & insurance
The Statista Global Consumer Survey offers a global perspective
on consumption and media usage, covering the offline and online social media
world of the consumer. It is designed to help marketers, planners
and product managers understand consumer behavior and
consumer interactions with brands. eCommerce & Health
▪ Cross-tabulation retail

▪ Customized target groups


Food & nutrition Housing & household
▪ Trend and country comparisons equipment
▪ Export in Excel (CSV) or PowerPoint format

Internet & devices Travel

Media & digital media Services & eServices

Mobility Characteristics &


demographics

Find out more on www.statista.com/customercloud/global-consumer-survey


47
About the Statista Consumer Market Outlook

200+ 150+ 13 50,000+


markets regions years (2010-2023) interactive statistics

The Consumer Market Outlook presents the key performance 4 Home &
Accessories
indicators sales, revenues and prices of the most important Laundry Care
consumer markets worldwide. Our specialized analysts’ market
calculations are based on data from validated sources. Alcoholic Drinks Hot Drinks

Household
▪ Revenues, sales, prices and forecasts Apparel
Appliances
▪ More than 200 product categories in up to 150 regions
Consumer Non-Alcoholic
▪ Covering the period 2010 to 2023 Electronics Drinks

Cosmetics & OTC


Personal Care Pharmaceuticals

Eyewear Luxury Goods

Tissue &
Food
Hygiene Paper

Tobacco
Footwear
Products

Furniture Toys & Hobby

Find out more on www.statista.com/outlook/consumer-markets


48
About the Statista Digital Market Outlook

90+ 150+ 7 30,000+


markets regions years (2017-2023) interactive statistics

The Digital Market Outlook presents up-to-date figures on markets of the


digital economy. The comparable key figures are based on extensive analyses
of relevant indicators from the areas of society, economy, and technology.
What is the size of the eCommerce fashion market in Spain?
How many connected cars are already on the road in China?

The answers to these and many more questions can be found in Statista's
Digital Market Outlook. It provides forecasts, detailed market insights, and key
indicators for the digital economy.

Nine digital verticals: eCommerce, Smart Home, eTravel, Digital


Media, eServices, FinTech, Digital Advertising, Connected Car, eHealth

Direct access & downloads, fully integrated into the Statista database

Market insights, forecasts and key performance indicators

Outlook reports with segment-specific topics (top companies,


trends, deep dives)

Find out more on www.statista.com/outlook/digital-markets


About the Statista Mobility Market Outlook
Key figures from the world of automotive and mobility

Small SUVs Pickup Trucks


The Mobility Market Outlook combines key topics in mobility and
provides relevant figures and forecasts of both the automotive market
and the market of mobility services on a global scale. Large SUVs Full-Size Vans
Find over 75,000 statistics about the automotive industry:
▪ Car classes, brands, fuel types Sports Cars Minivans
▪ Connected cars, car & ride sharing
▪ Revenues, volume sales and prices for over 25 countries Mini Cars Small Cars

Coming in 2019:
Medium Cars Large Cars

Flights – airlines and carriers, flight types


Executive Cars Luxury Cars

Motorcycles – motorcycle types


Connected
Connected Cars
Hardware
Public transport – mobility carriers, online/offline shares
Infotainment
Vehicle Services
Services

Find out more on https://www.statista.com/outlook/mobility-markets


About the ecommerceDB.com
The toolbox for all eCommerce relevant questions

ecommerceDB.com offers direct access to URL related revenue


information together with forecasts, customizable top, country,
regions and category rankings, KPI analysis and extensive
eCommerce relevant contact information to over 10,000 online
shops.

In depth analysis for over 10,000 online shops URLs

Adjustable top, category, country & region


rankings

Download shop profiles for seamless processing


CONTACT US
Direct contact to our eCommerce analysts TEL +49 40 28 48 41 409
E-MAIL sukhdip.mann@statista.com

Find out more on ecommercedb.com


51
About the Statista Toplists
Find information on top companies worldwide

The Statista Toplists show essential KPIs and include contact details and
address information for each company.

The Toplists are the perfect way to start researching leads in your sales
department, to get quick insights into new markets and as a starting point for
further market assessment.

With the most important company figures

Coverage of most Statista industries

Available for the most important regions

Find out more on www.statista.com/toplists


52
About Statista Research & Analysis
Market research – Market Analysis – Data Modeling

Statista Research & Analysis is a provider of comprehensive services in the


fields of market intelligence. Building upon our experience as one of the
world's leading statistics portals, our analyst team can support you in the
collection and evaluation of market, client and competitive information –
tailored to your individual needs. Our team consists of former top tier
management consultants, accomplished market researchers and business
analysts.

Consumer surveys and expert interviews

Market and competitive intelligence

Market sizing and forecasts


CONTACT US
TEL +49 40 282441 805
E-MAIL ra-request@statista.com

Find out more on www.statista-research.com


53
Authors

Ann-Kristin Hamke Maike Schlumbohm Oliver Sánchez


VP Strategic Market Insights Head of Country & Industry reports Analyst

ann-kristin.hamke@statista.com maike.schlumbohm@statista.com oliver.sanchez@statista.com

Ann-Kristin is the Vice President Strategic Maike Schlumbohm studied Business Studies Oliver Sánchez joined Statista in summer 2018
Market Insights at Statista and is in charge of in Germany, Spain and Australia. Before after numerous years in marketing and
the production of exclusive own Statista Statista she worked several years in the area of strategy. Oliver worked in various sectors such
content. internal consulting and market research for a as Pharmaceutical, Automotive and
global chemical company and as a research International Development.
After graduating in Business Mathematics, she fellow and lecturer for Six sigma at the
worked as a consultant with the Boston Leuphana university of Luneburg. Oliver completed his undergraduate degree in
Consulting Group and contributed to the International Business and a Masters in
build-up of the German online fashion retailer Comparative Local Development in Germany,
About You as a project manager and by Italy and Hungary.
heading the business intelligence department.

www.statista.com

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