5 June 2013- Consumers’ access to E&M content and experiences is being democratized around the world by ever increasing access to the Internet and explosive growth in the ownership of smart devices. According to PwC’s annual Global Entertainment and Media Outlook 2013-2017, growth in the industry will come from spending on digitally delivered media during the next five years, although most spending will continue to be on non-digital media.
In response, E&M businesses are continuing to heighten their customer insight and transform their business models to become more agile, as constant digital innovation becomes the industry’s new licence to operate, the Outlook says. Overall, Outlook forecasts that global E&M spending will rise from US$1.7 trillion in 2012 to US$2.1 trillion by 2017, with a 5.6% compound annual growth rate (CAGR).
China, Brazil, India, Russia, the Middle East and North Africa, Mexico, Indonesia, and Argentina will see the most growth, nearly doubling their share of total E&M revenues by 2017 to 22% from 12% in 2008. The average CAGR for these markets is more than double that of the E&M industry as a whole. In addition, the impact of a growing middle class and increased urbanisation in these markets will help reverse the fortunes of some segments of the industry.
At the same time, more mature and technologically advanced markets within North America, Western Europe and Asia Pacific, will be instrumental in driving the global shift towards digital consumption of E&M services.
As digital innovation and growth continues to dominate the E&M industry landscape, the strong momentum behind digital spending will trigger significant tipping points in many of the more mature markets of North America, Western Europe and Asia Pacific during the forecast period.
China, Brazil, India, Russia, the Middle East and North Africa, Mexico, Indonesia, and Argentina will see the most growth and will challenge the existing ranking of markets by revenue.
Marcel Fenez, Global leader, Entertainment & media, PwC, said:
“The growing affluence of a rapidly emerging middle class consumer with a propensity to spend on entertainment and media experiences -- combined with improving infrastructure in many high growth markets -- is bolstering overall growth rates in a number of key segments. Universally, E&M companies need to invest in developing and distributing content in ways that compel customers to loyalty and take advantage of their tendency to engage in sharing content experiences. This will require enhanced digital media measurement tools and business models that respond to the changing patterns of consumer behaviour.”
To harness growth and turn it into rising digital revenues, E&M companies of all types are evaluating their competitive advantages and redefining their positions with connected consumers. Every industry participant will need to invest in constant innovation in its products and services, its operating and business models and—most importantly—its customer experience, understanding and engagement.
Outlook findings showcase how current industry trends are impacting consumers, advertisers, content creators and digital distributors.
Marcel Fenez concluded:
“The old rationale of the E&M industry was to achieve complete control over the content life cycle from development through distribution. The connected consumer is the ultimate game changer—control is now in the homes and hands of E&M customers. Now E&M companies have to not only offer engaging content, but also an exceptional digital experience. This puts a tremendous burden on E&M companies of all kinds to find that ideal balance of the right content at the right price at the right time through the right medium.”
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