Entertainment and media outlook 2018-2022

Key highlights for Singapore to come!

Last year's key highlights for Singapore (2017 - 2021)

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

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

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 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

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

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.

Global entertainment and media outlook

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Oliver Wilkinson

Partner, Entertainment and Media Leader, PwC Singapore

Tel: +65 9732 9610