Media and entertainment revenues will rise at an annual rate of 4.4% between 2015 and 2020, from $1.72 trillion to $2.14 trillion. That is a slightly lower rate than in 2015, but as well as slower growth or even stagnation in some areas, rapid expansion is expected in some regions and sectors. The 17th annual Global Entertainment and Media Outlook from PwC identifies five key shifts emerging amid the continuing disruption.
Demography — younger consumers are the primary drivers of global growth. There is a strong correlation between the relative size of the population aged under 35 and growth in media and entertainment spending, irrespective of the wealth of a country.
Competition — while much of the industry is growing more global, programming tastes and cultures remain steadfastly local. Forces of globalisation and localisation are simultaneously redefining the industry.
Consumption — the bundle is far from dead. The majority of standalone over-the-top services may be gradually reabsorbed into aggregated offerings that will reflect the traditional bundles of incumbent providers, but these will be more flexibly priced and available on a full range of devices.
Geography — there are different rates of growth even within the same region. Although some markets, such as India and Indonesia, are among the fastest-growing, the United States and China are generating the greatest absolute dollar growth.
Business models — digital technology is disrupting markets. More nimble new entrants are able to take on established incumbents. Technology companies are becoming media players, and traditional publishers are evolving to emerge as hybrid media and technology companies.
PwC says that as these five shifts play out, companies will need to combine responsiveness and local insight to drive value and maximise growth.
“To do this, companies must capture the attention of consumers with experiences — whether delivered digitally or non-digitally — that engage and resonate with them at a local level,” said Deborah Bothun, the leader of the PwC global entertainment and media practice. “For those global players that succeed in doing it, the opportunities are legion.”
In 36 of the 54 countries covered by the figures, media and entertainment spending is growing more rapidly than gross domestic product.
The PwC Global Entertainment and Media Outlook 2016-2020 is a comprehensive online source of global analysis for consumer and advertising spend. With like-for-like, five-year historical and five-year forecast data and commentary across 13 industry segments in 54 countries, it allows comparison of consumer and advertising spend across segments and countries.