While a worsening global economy might presents challenges for entertainment and media companies, creating stronger and more relevant connections with consumers through smarter use of technology will be crucial to growth and long-term success. That is the recommendation from PwC in its UK Entertainment and Media Outlook 2022-2026.
Things will get worse before they get better, PwC suggests. As consumers rein in their spending amid soaring living costs, businesses are grappling with an economic environment not seen since the 1970s.
The latest UK Economic Outlook from PwC suggests that the United Kingdom is likely to enter a recession in 2022, with inflation peaking at around 10%-13% in 2023.
The PwC Consumer Sentiment Survey of over 2,000 adults in the United Kingdom in June 2022 found that 22% of consumers plan to spend less on digital television and online video subscriptions over the next 12 months, while on 7% plan to spend more.
While there is short-term uncertainty in the market, the long-term direction is clearer, with ‘digital’ or online spend expected to continue to increase.
The firm forecasts 4% annual growth of the entertainment and media sector in the United Kingdom by 2026, with the market expected to reach £97 billion, a third of it from internet advertising, two thirds of which will come from mobile.