KUALA LUMPUR, 5 October 2011 – It’s the golden age of the empowered consumer, with the demand for digital experiences increasing and becoming the norm, according to the latest Global Entertainment & Media Outlook 2011-2015 from PwC. The improved economic conditions in 2010 played a major role in the recovery of overall entertainment and media (E&M) spending, which rose by 4.6%. Some countries, notably China and India, were largely unscathed by the global recession and experienced significantly higher growth rates in E&M spending. Total E&M spending in Malaysia for 2010 was US$4.4 billion, up from US$4.1 billion in 2009 (7.7% increase).
According to the Outlook, global E&M spending is projected to rise by 5.7% compounded annually, until 2015. E&M spending in Asia Pacific is projected to increase by a compound annual growth rate (CAGR) of 9.3% over the next five years. This growth is being led by countries such as Vietnam and Indonesia, which have CAGR of 17.3% and 11.9% respectively. Closer to home, growth of the Malaysian E&M industry is projected at a CAGR of 7.1%. This growth is mainly contributed by internet advertising, tv advertising, radio and newspaper publishing.
In many markets the global E&M industry emerging from the recession has been profoundly changed. This is spurred by the ongoing – and accelerating - consumer migration to digital, largely due to the device revolution. Internet access spending was barely affected by the economic conditions. It’s expected to rise to US$408 billion in 2015, an 8.6% compound annual increase. Digital currently accounts for 26% of all spending, but it’s projected to rise to 33.9% by 2015.
“Simply put, digital is the new normal for businesses going forward - driving E&M operating models, consumer relationships and revenue growth. The whole E&M industry is being driven to create new experiences that engage the empowered consumer. Advertisers and agencies are becoming more sophisticated in exploiting these new brand opportunities, and this is driving an unexpected strong recovery in advertising,” says Sridharan Nair, Partner, PwC.
“We expect digital advertising revenue in Malaysia to increase from the current US$60 million to about US$127 million in 2015. That’s almost twice the current levels. Comparatively, we only expect non-digital revenue to hit US$1.45 billion in 2015, up from the current US$1 billion,” Sri added.
Advertising, the most cyclically sensitive of the three E&M spending streams, recorded the largest year-on-year swing, rebounding at 5.8% in 2010 from an 11% slump in 2009. Overall global advertising will increase at a 5.5% compound annual rate to US$578 billion in 2015. Consumer / end user spending also improved, rising 2.2% in 2010, after a fall of 0.4% in 2009.
“More and more advertisers will use mobility and social networking to develop consumer relationships, because consumers indicate that they feel closer to brands in the digital space. The shift from traditional formats to digital is only going to continue, and businesses need to be more creative in reaching out to their audience. One way to do this is to collaborate with others through what we call the collaborative digital enterprise (CDE),” he continued.
The Outlook highlighted three key themes for the E&M industry for the period spanning 2011 until 2015, namely:
In the next five years, it’s projected that Latin America will be the fastest-growing region in terms of E&M spending, with a projected 10.5% compound annual increase to US$109 billion in 2015 from US$66 billion in 2010. Asia Pacific will be next, at 6.5% compounded annually from US$395 billion to US$541 billion.
For more in-depth data, visit www.pwc.com/outlook.
Notes to Editor:
About the Outlook
PricewaterhouseCoopers Global Entertainment & Media outlook 2011-2015, the 12th annual edition, contains in-depth analysis and forecasts of 13 major industry segments across four regions of the globe: North America (USA and Canada), EMEA (Europe, Middle East and Africa), Asia Pacific and Latin America. To access the Global Entertainment & Media Outlook 2011-2015 online go to: http://www.pwc.com/outlook.
Digital spending, as included in the Outlook, consists of broadband and mobile Internet access, online and mobile Internet advertising, video-on-demand, mobile TV subscriptions, digital music, electronic home video, online and wireless video games, digital consumer magazine circulation spending, digital newspaper circulation spending, digital trade magazine circulation spending, electronic consumer, educational and professional books, and satellite radio subscriptions.
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