Entertainment and media rebounds strongly from pandemic slump | Media Analysis | Business | News | Rapid TV News
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The recent strength of streaming has been widely reported but says research from PwC, the entertainment and media (E&M) market in general is rebounding strongly from the Covid-driven slump with revenues from streaming, gaming and user-generated content transforming the industry.
Pwc stremaing 13 July 2021
Indeed, the PwC Global Entertainment & Media Outlook 2021-2025 - the 22nd annual analysis and forecast of spending by consumers and advertisers across 53 territories - categorically states that the E&M industry has regained its momentum, with revenues outpacing the economy as a whole. It calculates that following a “challenging” 2020, when in-person entertainment plummeted, including a 71% decline in movie theatre box office revenues. the more than $2 trillion industry is on track to grow by 6.5% in 2021 and 6.7% in 2022, powered by strong demand for digital content and advertising.

The extent of the rebound was shown clearly in the report which noted that the 3.8% decline in global E&M revenue, from US$2.1 trillion in 2019 to US$2.0trn in 2020, the biggest year-on-year drop in the Outlook’s 22 years. PwC predicts that from 2021 to 2025, global E&M revenue will grow at a compound annual growth rate (CAGR) of 5.0%, taking industry revenues to US$2.6 trillion in 2025.

Going forward a number of E&M segments showed clearly the shifting consumer demand. Traditional TV/home video remains the largest E&M consumer segment generating US$219.0 billion but this is forecast to but will continue to shrink by 1.2% CAGR over the next five years. Not surprisingly, many younger consumers were found to have little awareness of, or interest in, traditional media. On the other hand, media platforms designed for young consumers or that enable lightly-produced, authentic content have boomed.

By contrast, video streaming boomed in 2020 and its growth trajectory is projected to continue with the subscription video-on-demand (SVOD) sector set to grow at a CAGR of 10.6% to 2025, making it an US$81.3 billion industry. Meanwhile, cinema revenues are projected to rebound in 2021 as lockdowns ease but will not recover to pre-pandemic levels until at least 2024.

Mobile internet access revenues rose at a 6.1% CAGR from US$449bn in 2020 to US$605bn in 2025, underpinned by the spread of 5G, advances in handset technology, and premium content bundles. Internet access accounted for 34% of E&M spending in 2020 and will increase at a 4.9% CAGR, from 2020’s US$694 billion to US$880 billion in 2025.

“Whether it’s box office revenues shifting to streaming platforms, content moving to mobile devices, or the increasingly complex relationships among content creators, producers and distributors, the dynamics and power within the industry continue to shift,” said Werner Ballhaus, global entertainment and media industry leader partner, PwC Germany commenting on the PwC Global Entertainment & Media Outlook 2021-2025 report. “The hunger for content, continued advances in technology and new business models and ways of creating value will drive the industry’s growth for the next five years and beyond.

“Even in the areas that offer the most compelling topline growth – like video streaming – the nature of competition is likely to change dramatically over the coming years. And all the while, the social, political, and regulatory context in which all companies operate continues to evolve in unpredictable ways. All of which means that sitting still, relying on the strategies that created value and locked up market share in the past, will not be the most effective posture going forward.”