Spending on internet advertising rose by 9% to $336Bn in 2020, overtaking non-internet ad spending for the first time worlwide, and is projected for strong growth of 7.7% CAGR over the next five years.
Traditional TV/home video remains the largest Entertainment and Media (E&M) consumer segment ($219.0Bn) but in terms of consumer spending will continue to shrink (-1.2% CAGR) over the next five years.
Newspapers and consumer magazine revenue will also contact over the next five years.
In the advertising category, newspapers and consumer magazines will be the only segment to decline to 2025, with revenue set to fall at -1.4% CAGR. In contrast, cinema will be the fastest-rising segment in the advertising category, although this is mostly driven by the rebound in 2021 coming from a very low base in 2020.
The same is true of the B2B segment, where advertising growth will be at a 21.1 CAGR over the forecast period, supported by recovery in trade shows.
Youth must be served
Many younger consumers have little awareness of, or interest in, traditional media. On the other hand, media platforms designed for young consumers or that enable lightly-produced, authentic content have boomed.
Gaming is central to the youth movement and is becoming a significant driver of data consumption, in fact it is on pace to be the fastest-growing content category in that regard, accounting for 6.1% of total data consumption globally by 2025, up from 4.7% in 2020.
Internet access demand and spend to keep on growing driven by mobile
Internet access accounted for 34% of E&M spending in 2020 and will increase at a 4.9% CAGR, from 2020’s $694Bn to $880Bn in 2025.
Mobile internet access will drive market growth, with revenues rising at a 6.1% CAGR from $449Bn in 2020 to 605Bn in 2025, underpinned by the spread of 5G, advances in handset technology, and premium content bundles.
Around the world, pandemic lockdowns made home entertainment effectively the only choice, with internet access an essential. In total, 1.1Bn households had fixed broadband in 2020; a further 4.6Bn smartphone connections put unprecedented pressure on networks.
Total data consumption increased 30% during the year and consequently set off a new, higher forecast growth trend. Increasing connectivity and speed laid the groundwork for E&M bright spots in 2020, as OTT video, video games and internet advertising showed above-average rises.
Regulation and anti-trust watch by Authorities, big challenge
But there’s a big challenge for E&M, digital advertising growth and for digital platforms in general, Governemnt watch and regulations. Antitrust pressures have increased with calls to break up big tech platforms along with government proposals for new media regulations. Changes to current regulatory regimes are inevitable and it’s vital that E&M players incorporate regulatory risks in their planning processes.
CJ Bangah, Technology, Media & Telecom Principal, PwC in the US, explains: “2020 was unprecedented, and we expect the kind of growth and contraction within and across E&M segments we have experienced to continue. The power of digital, including the early stages of 5G use cases and the exponential growth of streaming, together with consumers embrace of new and enhanced experiences are a constant force for change. Dynamic shifts within the E&M ecosystem are likely to expand as the industry responds to the evolving landscape of future consumption patterns.”
All those above are some data and forecast included in the PwC Global Entertainment & Media Outlook, with the accompanying “Power Shifts 2021-2025” published today by the consultancy firm PwC.
The Outlook includes five-year historical and five-year forecast data and commentary for 14 industry segments across 53 territories. Segments include books; business-to-business; cinema; data consumption; internet access; music, radio and podcasts; newspapers and consumer magazines; OTT video; TV and home video; as well as internet, out-of-home and TV advertising.
Read here below some other key insights and foretells from now to 2025 included in this report