G4EU's Brexit Guide for
Our comprehensive report, prepared by a team of lawyers and specialists from across the industry led by Jas Purewal, sets out to look at, in detail, the devastating effects that a no deal or hard Brexit will have on the cost of interactive entertainment (including video games, esports, XR, and interactive broadcast)
The UK is the 5th largest video game market in the world in terms of consumer revenues, which are valued at £5.11bn with approximately 32.4m people in the UK playing games and 2261 companies of all sizes employing more than 47K people.
This report states that in a no deal or hard Brexit:
1) Interactive entertainment businesses will face considerable uncertainty and bureaucracy, driving up costs and impeding day-to-day business. There are particular concerns around access to personal data; changes to the UK/EU customs, VAT and intellectual property law systems; and falling out of the EU’s regulation and dispute resolution systems.
2) Products and services will be more expensive, harder to access, delayed or even partly or wholly unavailable in the UK - this includes physical products like games consoles and merchandise, online subscription services from Netflix and Spotify to video game pass services, online games and entertainment channels and ‘just in time’ delivery systems like Amazon Prime over time.
3) UK-based businesses will be compelled to relocate to EU in whole/part over time in order to comply with rules for EU trade access and to keep rights and benefits unavailable to UK-based businesses post-Brexit.
4) Loss of access to EU talent and friction on UK/EU travel will discourage high-skilled creative/technical staff from working here, causing overtime talent scarcity and a brain drain.
5) Loss of consumer rights such as refund/return rights, fair labelling and EU mobile data roaming.
6) Cultural diminishment: interactive entertainment is an important part of the UK’s soft cultural power and many people have told us about Brexit having a negative impact on the industry’s values of community.