PwC publishes Annual Global Entertainment and Media Outlook
Bundles of numbers (see report link below for detail) and some interesting thoughts on how the media sector might shape up and evolve in the annual PwC report.
PwC’s Global Entertainment and Media Outlook for 2012-2016 points to growing sales of tablets and smart devices as “underlining the growing revenue opportunities” in the sector. “Increasingly connected” and mobile consumers are the key markets.
The report forecasts that digital’s share of total global advertising spend will increase from 28% in 2011 to 37.5% in 2016, accounting for 67% of total Entertainment and Media spending growth in 2016.
Whilst for some sectors – games and music – this means root and branch change, for others, such as consumer magazines, PwC forecasts that digital revenue will still only be around the 10% mark by 2016 (3.1% in 2011).
See here for much more detail on media sectors – http://www.pwc.com/gx/en/global-entertainment-media-outlook/segment-insights/index.jhtml
PwC expects mobile internet access subscriber numbers to “more than double during the next five years to 2.9bn, of which almost 1bn will be in China. But India will be the fastest growing market in this area.”
France is now the second largest TV subscriptions market behind the United States, “driven by a 76% rise in IPTV households.” By 2016 Russia will become the largest TV advertising market in EMEA.
After rebounding by 4.6 per cent last year, as a whole the global media and entertainment industry should grow at a 5.7 per cent compound annual rate, from $1,400bn in 2010 to $1,900bn by 2015, according to this annual outlook on the industry.
“Thirteen countries in 2011 had E&M spending above $25 billion, led by the United States at $464 billion. China passed Germany in 2011 to become the third largest E&M market in the world. Brazil overtook South Korea in 2011 and during the next five years will pass Canada and Italy to become the seventh largest market.
“Of the world’s 13 largest advertising markets, the fastest-growing through 2016 will be China at 14.6 percent CAGR, Russia and Indonesia, both at 13.1 percent CAGR, and Brazil at 9.0 percent.”
The report suggests companies have now navigated through the digital “fog” and the key is now to “focus on planning out and executing their digital strategies.”
Interestingly PwC suggest that giving the consumer more control of personal data may result in the consumer giving up more data rather than less.
A fourth category is suggested for agencies attention alongside paid, bought and earned. “Managed advertising” – orchestrating use of social media via bloggers for example.
PwC sees new roles emerging across the E&M value chain:
- acting as the online destination or physical auditorium that hosts the customer experience (the ‘venue’)
- aggregating and filtering consumers’ content requirements (the ‘community curator’)
- providing exclusive content (the ‘content monopoliser’)
- being the ‘device developer’
- acting as the consumer’s trusted content companion across devices (the ‘digital services champion’)
- being the third-party specialist supporting experimentation, innovation and execution (the ‘ideas generator’)