EY survey shows strong local entertainment spend despite downturn

• Nearly half of UK consumers (45%) plan to maintain spending on local and live entertainment over the next 12 months despite economic uncertainty
• Overall cost and value for money are the primary considerations for consumers, however premium offerings like VIP packages remain popular
• Sustainability is increasingly important, with younger generations willing to pay a premium for features such as locally sourced food

At a time of economic uncertainty and cautious consumer spending, a new survey from EY has revealed that nearly half of consumers are committed to maintaining their spending on local and live entertainment over the next 12 months.

The EY Media & Entertainment (M&E) Pulse Poll, which polled over 1,000 consumers in the UK, explores the perceptions, attitudes, and intentions of consumers worldwide towards experiential entertainment activities, including live events, sporting activities, and theme parks.

The annual report found that local and live entertainment continued to be the most popular media and entertainment purchases over the last 12 months, with 49% and 48% of UK consumers respectively indicating their preference. Notably, 45% of consumers in the UK intend to sustain their spending on live entertainment over the next 12 months, whilst half (50%) intend to do the same for local entertainment.

When it came to purchasing decisions, overall cost and value for money were the most significant factors for UK consumers when selecting an entertainment activity. Despite this, premium products and services, such as VIP packages, special edition merchandise, and guided tours, remain highly sought after, with 83% of consumers purchasing packages for local entertainment and 77% for live entertainment.

The role of technology in enhancing experiences

The survey also sheds light on the increasing role of technology in enhancing the entertainment experience with consumers across all demographics, including older generations, identifying technology as a crucial factor when purchasing tickets. The three digital capabilities deemed most beneficial include contactless payments check-in (86%), digital ticketing (84%), and maps and wayfinding tools (80%).

The survey reveals that overall cost and value for money are the primary considerations for 68% of consumers when choosing entertainment activities. High costs are cited as the biggest deterrent to enjoyment (54%), surpassing concerns about crowded spaces and long wait times (both at 42%).

Emotional drivers for purchasing decisions

When exploring the motivations behind spending on entertainment, 45% of respondents indicate personal interest in the entertainment type as a key factor, while only 9% are influenced by recommendations from friends and family.

Emotional motivations also play a significant role in purchasing decisions, with 64% of consumers seeking moments of joy and excitement, and 59% wanting to spend quality time with loved ones. Interestingly, younger consumers (Gen Z and Millennials) are more likely to cite “improving mental health” as a motivation compared to older generations, with 32% of Gen Z and 27% of Millennials highlighting this aspect versus 23% globally.

Anna Fry, EY UK&I Technology, Media & Entertainment and Telecommunications Tax and Law Leader, said: “In the face of economic uncertainty, our survey reveals that consumers remain committed to spending on local and live entertainment, demonstrating a resilient appetite for these experiences. This enthusiasm presents a significant opportunity for entertainment providers. To capitalise on this momentum, it is essential for them to harness the diverse motivations driving consumer choices and to leverage technology effectively, ensuring they deliver exceptional value and engagement that resonates with today’s audiences.”

Sustainability as a key consideration

Sustainability is another key consideration for consumers when purchasing entertainment experiences. The features they are most willing to pay extra for include locally sourced food (61%) and contributions to local communities (60%). Younger generations - especially Gen Z and Millennials - are significantly more willing to pay extra for sustainable features. For example, 28% of Gen Z and 16% of Millennials are willing to pay for carbon offsetting, compared to just 12% globally. Similarly, 25% of Gen Z and 15% of Millennials value lower carbon footprints (vs. 11% globally), and 23% of Gen Z and 15% of Millennials support water conservation practices (vs. 11% globally).

Martyn Whistler, EY UK&I Client Executive for Media & Entertainment, added: “Sustainability is no longer just a trend; it has become a fundamental expectation among consumers, particularly younger consumers. Our findings indicate that a significant portion of consumers are willing to invest in entertainment experiences that prioritize sustainable practices, such as locally sourced food and community contributions. This shift underscores the importance for entertainment providers to integrate sustainability into their offerings, not only to meet consumer demand but also to foster a more responsible and resilient industry."