Entertainment and media outlook 2017-2021: Singapore highlights

Curtain up! User experience takes centre stage


Key highlights in Singapore

Room for entertainment & media growth

Over the next five years, the entertainment and media sector in Singapore, Southeast Asia and globally is projected to grow at the following rates:

  • Singapore: 4.7% compound annual growth rate (CAGR), from US$5.3 billion in 2016 to US$7.1 billion in 2021
  • Southeast Asia: 7.2% CAGR from US$45.6 to US$64.5 million
  • Globally: 4.2% CAGR, from US$1.8 trillion to US$2.2 trillion in 2021

Having the right content & distribution strategy is no longer sufficient. You need the right user experience to succeed

  • E&M companies have been accustomed to creating differentiation primarily based on two dimensions: content and distribution; now, they must focus more intensely on a third: user experience
  • Future growth in the industry will be driven by platforms where consumers have the freedom of choice
  • Companies that “super-serve” fans via new, deeper experiences will move faster to unlock opportunities for revenue expansion

Video games: Now more popular than TV in Singapore

  • 2016 marked a tipping point where consumer spend on video games reached US$368 million in Singapore, overtaking TV (at US$337 million) for the first time, and is forecast to rise to US$489 million in 2021
  • Contributing to this surge is the profile of the typical gamer which has shifted from being a young male, probably playing to beat a computer, to a casual or social gamer from all demographic segments
  • On the TV side, spending is down as consumers have grown in favour of viewing content online or social media than subscribing to traditional bundles

Live events: The dark horse in the industry

  • Live events emerged as a segment that has great appeal to the Singapore audience, and is arguably the underdog of the entertainment and media industry
  • Over the next five years, consumer spend on live events in the country is projected growth at a CAGR of over 4% (from US$236 million to US$287 million in 2021), almost double the rate of Singapore’s total entertainment and media consumer spend
  • The rising popularity of live events is partly fueled by the National Stadium playing host to global starts, in which consumers are eager to pay for the live experience

Internet advertising: Significant growth margins ahead

  • Propelled by the rapid growth of mobile ad advertising, internet advertising now generates more revenue than TV advertising globally, and is set to grow at a CAGR of 9.8% (from US$194 billion to US$304 billion in 2021)
  • Singapore, however, is a long way behind the global average as internet advertising only represents 15% of its total ad spend (vs. 26% in Japan and 54% in China, for example)
  • On that note, internet advertising in Singapore is forecast to grow at a strong CAGR of 11% over the next five years, from US$269 million to US$461 million in 2021

Think regional: Entertainment and media in Southeast Asia

  • The media industry is diverse across its segments, and this diversity is multiplied when you layer in the heterogeneous nature of the industry in the various markets of Southeast Asia.
  • Indonesia remains the largest entertainment and media market in Southeast Asia, and is expected to be the highest growing market in the region.

Contact us

Oliver Wilkinson
Partner, Entertainment and Media Leader
Tel: +65 6236 7248
Email

Follow us