Entertainment and media revenues bounced sharply due to the fall of the pandemic; the shift to user-generated streaming, gaming, and content is transforming the industry: PwC

NEW YORK, July 12, 2021 / PRNewswire / – The global entertainment and media (E&M) industry has regained momentum, with higher revenues than the economy as a whole. The $ 2 trillion or more industry is on track to grow 6.5% in 2021 and 6.7% in 2022, driven by strong demand for digital content and advertising. Renewed growth continues to be a challenging 2020, when in-person entertainment plummeted, including a 71% drop in cinema box office revenue. These figures come from PwC Global Entertainment & Media Outlook 2021-2025, the 22nd annual analysis and forecast of E&M spending by consumers and advertisers in 53 territories.

The dominance of digital revenue in E&M will grow even more

Other conclusions this year Perspective to include:

  • The 3.8% drop in global E&M revenue, from US $ 2.1 million in 2019 a US $ 2.0 million in 2020, it was the largest year – on – year fall in the Outlook 22 years. But there were bright spots in various E&M segments created by changing consumer demand.

  • From 2021 to 2025, we project that global E&M revenues will grow at a healthy annual compound growth rate (CAGR) of 5.0%, bringing industry revenues to 2.6 million US dollars in 2025.

  • Traditional TV / home video is still the largest consumer segment of E&M (219.0 billion US dollars), but will continue to decline (-1.2% CAGR) over the next five years.

  • Video streaming increased in 2020 and its growth trajectory will continue. Video on demand (SVOD) transmission is expected to grow at a CAGR of 10.6% by 2025, making it a 81.3 billion US dollars industry. Meanwhile, cinema revenues are expected to recover in 2021 as blockages are eased, but will not recover to pre-pandemic levels until at least 2024.

  • Video game and sports revenues continue to rise rapidly 147.7 billion US dollars in 2020, with a CAGR of 5.7% projected to expand the segment to almost one 200 billion US dollars business (194.4 billion US dollars) in 2025.

  • Virtual reality (VR) is the fastest growing E&M segment, albeit from a small base. Its revenues increased by 31.7% in 2020 until 1.8 billion US dollars and is expected to maintain a CAGR of 30% + for the next five years 6.9 billion US dollars business in 2025.

  • Music is on the verge of strong growth after a massive 74.4% decline in live music revenue in 2020. We expect total music revenue to grow to 12.8% CAGR over the next five years, powered by digital transmission, which will expand to become a 29.3 billion US dollars business for 2025, along with a return to live performances.

  • Spending on Internet advertising increased by 9% to 336 billion US dollars in 2020, it exceeds for the first time the non-Internet advertising expenditure and a strong growth of 7.7% CAGR is expected over the next five years.

  • Internet access accounted for 34% of E&M spending in 2020 and will increase by 4.9% CAGR, starting in 2020 694 billion US dollars a 880 million US dollars in 2025. Mobile Internet access will drive market growth, with revenue growth of 6.1% CAGR 449 billion US dollars in 2020 at 605 billion US dollars in 2025, based on the spread of 5G, advances in mobile phone technology and premium content packages.

Werner Ballhaus, World’s Leading Partner in the Entertainment and Media Industry, PwC Germany, He said: “The pandemic slowed down the entertainment and media industry last year, but it also accelerated and amplified the power changes that were already transforming the industry. Whether box office revenue moves to transmission platforms, content is transferred to mobile devices or increasingly complex relationships between content creators, producers and distributors, the dynamics and power within the industry continue to change.Our perspectives show that content hunger , continued advances in technology and new business models and ways to create value will drive the growth of the industry over the next five years and beyond. “

Generational shift: young people will be cared for

Not surprisingly, many younger consumers have little awareness or interest in traditional media. On the other hand, multimedia platforms designed for young consumers or that allow for authentic lightweight production content have grown. Gaming is critical to the youth movement and is becoming a major driver of data consumption; in fact, it is about to be the fastest growing content category in this regard, accounting for 6.1% of total data consumption globally in 2025, compared to 4.7% in 2020.

Regulatory changes: backtracking on platforms

Regulatory scrutiny of large technologies is another change that affects E&M. Antitrust pressures have increased with calls to break down large technology platforms, along with government proposals for new media regulation. Changes in current regulatory regimes are inevitable and it is vital that E&M players incorporate regulatory risks into their planning processes.

CJ Bangah, director of technology, media and telecommunications, PwC in the US, He added: “2020 was unprecedented and we expect it to continue the kind of growth and contraction within and between the E&M segments we have experienced. Exponential growth in streaming, along with consumers embracing new and improved experiences are a constant force for change.Dynamic changes within the E&M ecosystem are likely to expand as the industry responds to the evolving landscape of patterns future consumption “.

Notes to editors

About Global Entertainment & Media Outlook

PwC Global Entertainment & Media Outlook, with the attached publication “Power Shifts – 2021,” provides an in-depth analysis of global consumer spending and advertising on E&M. Outlook includes data and comments on five-year historical and five-year forecasts for 14 industry segments in 53 territories. Segments include books; business to business; movie theater; data consumption; internet access; music, radio and podcasts; consumer newspapers and magazines; OTT video; TV and home video; as well as Internet, outdoor and television advertising. Learn more at www.pwc.com/outlook.

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We are a network of companies in 155 countries with more than 284,000 people committed to providing quality services, advice and taxes. Learn more and tell us what you care about by visiting us at www.pwc.com.

PwC refers to the PwC network and / or one or more of its member companies, each of which is an independent legal entity. Please look www.pwc.com/structure for more details.

© 2021 PwC. All rights reserved

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