NEW YORK, September 2, 2020 /PRNewswire/ — Drinking habits can take a lifetime to learn, but just a lockdown to lose. According to PwC Global Entertainment and Media Outlook 2020-2024, the COVID-19 pandemic has accelerated and amplified ongoing changes in consumer behavior, advancing digital disruption and forging industry tipping points that would not have been reached for many years. Digitization, one of the main forces shaping all industries, has been intensified by social distancing and mobility restrictions. As a result, the entertainment and media (E&M) world in 2020 has become more remote, more virtual, more streaming, more personal and – for now at least – more home-centric than anyone ever had. planned for the beginning of the year.
Industry growth is contracting sharply…
The pandemic afflicting the world has brought the growth of the global O&M industry to a screeching halt. Accordingly, we have delayed the publication of the Outlook three months so that we can properly assess the impacts of the pandemic. Revised revenue growth projections underscore why this decision was the right one. Amid a global recession, 2020 will see the biggest drop in global E&M revenue in this research’s 21-year history, down 5.6% from 2019 – more than $120 billion In absolute terms. In 2009, the last year the global economy contracted, total global O&M spending fell by just 3.0%.
… but remains robust in the longer term
However, as the shockwaves of 2020 continue to ripple through the global economy, our forecasts show that the industry’s fundamental growth trajectory remains solid. In recent years, as media experiences have become increasingly central to our lives, global E&M growth has generally exceeded GDP. So, after the challenges of 2020, we expect E&M to resume its outperformance.
Our projections show that in 2021, O&M spending will increase by 6.4%. Over the five-year forecast period, from 2019 to 2024, we expect overall revenue growth at a compound annual growth rate (CAGR) of 2.8%.
Changeover times are accelerating
As is the case in the broader economy, the current pain of O&M is not evenly distributed across the industry. It’s most acute in segments that COVID-19 has literally shut down, such as events: live music, cinema, and trade shows. Advertising spending will also decrease by 13.4%. At the same time, the long transition of newspapers from print to digital has accelerated by several years, for example reducing the income from newspaper printing.
One of the results is that the E&M segments are being transformed much sooner than originally expected. Compare cinema box office to subscription video on demand (SVOD). As recently as 2015, box office revenue was three times that of SVOD. SVOD revenues will exceed the box office in 2020 and are expected to increase over the next five years, reaching more than double the size of the box office by 2024. Or consider the amount of data consumed on smartphones compared to the top fixed rate. After taking a small lead in 2019, the smartphone is now on track to become the number one personal device used by consumers to access the internet globally.
Winners and losers emerge…
So how are the changes accelerated by COVID-19 playing out across different industry segments? People staying at home, over-the-top (OTT) video saw its global revenue grow by 26.0% in 2020. And it will continue to rise sharply in the coming years, nearly doubling in size from $46.4 billion in 2019 at $86.8 billion in 2024. The launch of the Disney+ streaming service at the end of 2019 could hardly have been better timed: after projecting between 60mn and 90mn of paying subscribers by 2024, Disney+ reached 60.5mn at the start August 2020. Unsurprisingly given the boom in streaming, global data consumption is another beneficiary of the digital acceleration fueled by COVID-19. It will jump 33.8% in 2020 and more than double from 1.9 quadrillion megabytes (MB) in 2019 to 4.9 quadrillion MB in 2024.
At the other end of the scale are the hardest hit segments. With many cinemas closed and major film releases delayed, we expect total global cinema receipts to fall by almost 66% this year. And lost ground is unlikely to be recovered; our forecast is that in 2024, cinema revenues for 2024 will be below their 2019 level. overall revenues down more than 14%, with mainstream magazines suffering the most. That said, digital offers a silver lining: a tipping point for mainstream magazines in 2023 will see their global revenues from digital advertising surpass those from print advertising. Other important sectors will struggle to recover the growth they lost in 2019. For example, the global advertising sector – which will fall 13.4% in 2020 to $559.5 billion – is not expected to return to 2019 levels until 2022.
…as a vast industry reconfigures
Yet, perhaps counterintuitively, some “mainstream” media have held on despite the effects of COVID-19 and digital acceleration. Amid reports of a boom in book sales during lockdowns, global total consumer book revenue is expected to continue its upward trajectory, growing by 1.4% compounded annually between 2019 and 2024 to reach $64.7 billion. Significantly, technology is playing an important role, with the growing use of smartphones and smart speakers driving the adoption of audiobooks, allowing consumers to listen on the go.
Live physical events are another long-running segment that seeks to adapt to the reality of an accelerated digital world. With concert halls, exhibition centers and stadiums closed for much of the year, some live events are using digital platforms to stay in touch with their audiences. UK, London Wireless Festival partnered with tech company MelodyVR in mid-2020 to deliver recorded VR performances from artists including Cardi B, Travis Scott, and Migos. More than 130,000 people from 34 countries participated virtually.
A year that stands out
Although 2020 has been a difficult and disruptive year for most industries – including many E&M segments – it is clear that consumer demand for the diverse and growing range of media choices currently on offer continues to grow. This year’s turnover Outlook reflect the full force of the economic downturns and digital acceleration triggered by COVID-19, but the longer-term outlook for the E&M industry as a whole remains bright. That said, it is also clear that as normalcy slowly returns, there will continue to be winners and losers.
Werner Ballhaus, Global Entertainment & Media Industry Leader at PwC, comments: “It is clear that COVID-19 has accelerated consumers’ transition to digital consumption and triggered disruptive changes – both positive and negative – in many forms of media. . Yet it is equally evident that E&M The underlying forces of the industry and its appeal to consumers remain as strong as ever Although there are still challenges for E&M businesses as we go further Beyond the pandemic, the digital migration it has driven forward will also generate opportunities in all segments – not just those who have benefited from its impacts to date.”
Press access to Global Entertainment and Media Outlook online content
To request press access to the online website Global Entertainment and Media Outlook 2020-2024 content, contact Ashley Worley at [email protected]. This access will allow you to illustrate this and other media reports both by extracting details from the Global Entertainment and Media Outlook segment and territory level dataset and analysis, and creating on-screen charts that can be exported for use with your stories.
About Global Entertainment and Media Outlook
PwC’s 21st annual edition of Global Entertainment and Media Outlook is a comprehensive online source of global analysis of consumer spending and advertising. With five-year historical and forward-looking comparable data and commentary for 14 industry segments defined in 53 territories, the Outlook makes it easy to compare and contrast consumer and advertising spend across segments and territories. Learn more about www.pwc.com/outlook.
Segments covered by the Global Entertainment and Media Outlook
Books; Business to business; Movie theater; data consumption; Internet access; Internet advertising; Music, radio and podcasts; mainstream newspapers and magazines; OTT video; outdoor advertising; Traditional television and home video; TV advertising; Video games and esports; Virtual reality
On Global Entertainment and Media Outlook Data
Much of the material in this press release is derived from data from the Global Entertainment and Media Outlook 2020-2024. PwC continually seeks to update the Global Entertainment and Media Outlook The data. Therefore, please note that the data contained in this press release may not be aligned with data found online. The online Global Entertainment and Media Outlook 2020-2024 is the most up-to-date source of consumer and advertising spending data.
About PwC
At PwC, our goal is to build trust in society and solve important problems. We are a network of firms in 157 countries with more than 276,000 people who are committed to providing quality assurance, advisory and tax services. To learn more and tell us what matters to you, visit us at www.pwc.com.
PwC means the PwC network and/or one or more of its member firms, each of which is a separate legal entity. please look www.pwc.com/structure for more details.
Logo- https://mma.prnewswire.com/media/1121790/PWC_Logo.jpg
Ashley Worley,
PwC Global Corporate Affairs & Communications,
E-mail: [email protected]
SOURCEPwC
