Global Entertainment andMedia Outlook 2013-2017

Agility to Innovate with a Focuson Customer Insights

November 13th, 2013

www.pwc.com/outlook

PwC LLP

Internet access spending

Internet advertising

TV subscriptions and license fees

Television advertising

Filmed entertainment

Video games

Music

Consumer magazine publishing

Newspaper publishing

Radio

Out-of-home advertising

Consumer and educational bookpublishing

Business-to-business

www.pwc.com/outlook

Consumer/end-user &advertisingspending

5 year historic& 5 yearforecast data

50 countries

13 segments

Where is thebig pictureheading?

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Divergence inthe GlobalVillage

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Plotting global markets based on growth andmarket size reveals two different insights

3.0% | $1,011 9.5% | $3512017

market size($US mn)

Mature Next Wave

Up &Comers

SlowGrowing

Examples:GermanyJapanUKUS

Examples:GreecePolandSwedenNew ZealandIreland

Examples:BRIC

ArgentinaIndonesia

Examples:Colombia

KenyaPhilippines

ThailandTurkey

$114

MarketSize

2.6% 10.2% | $101

2013 – 2017 CAGR

$ 1,384,554

3.7%CAGR

Market Size $ 477,648

11.6%

11.2%

$ 136,214

3.1%

$154,057

Entertainment & Media Market

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What drives advertiserand consumer spendingglobally and in Ireland?

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59

81

130

194

220

221

228

290

316

347

654

714

1,303

Consumer magazines

Out-of-home

Radio

Consumer and educational books

Music

TV advertising

Filmed entertainment

Video games

B2B

Internet advertising

Newspaper publishing

TV subscriptions and license fees

Internet access

Internet spending will drive future growth

Ireland forecasted 2017 total E&M spend by segment

€3.9bn €4.6bn

2013 2017

4.2%growth

€m

PwC LLP

-3.4%

-3.3%

-1.1%

0.2%

0.8%

2.6%

2.7%

3.1%

3.7%

4.2%

5.7%

6.0%

13.1%

14.4%

Filmed entertainment

Newspaper publishing

Consumer & educational books

Radio

Consumer magazines

TV subscriptions & license fees

Music

Out-of-home

B2B

Total

TV advertising

Video games

Internet access

Internet advertising

Internet spending will drive future growth

Ireland’s growth in aggregate E&M spend (2013 – 2017 CAGR)

€3.9bn €4.6bn

2013 2017

4.2%growth

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Ireland’s growth in internet subscribers will driveadvertiser and consumer spending of €4.6bn by2017. . .

385

439

CAGR:3.8%

2013

2017

Mobile Internet Access

416

865

CAGR:20.5%

2013

2017

801

1,303

CAGR:13.1%

2013

2017

Fixed Internet AccessFixed + Mobile Internet

Access

€m

€m

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The growth in connected devices is fuellingexpanded Internet usage

2012 2013 2014 2015 2016 2017

Tablet

Smartphone

Portable PC

Desktop PC

Worldwide Shipments of Connected Devices

23%

2012 – 2017CAGR

16%

1%

-4%

Source: IDC, Global Wireless Insight Package - PwC

Where arethe tippingpoints andsegmentvariations?

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59

81

130

194

220

221

228

290

316

347

654

714

1,303

Consumer magazines

Out-of-home

Radio

Consumer and educational books

Music

TV advertising

Filmed entertainment

Video games

B2B

Internet advertising

Newspaper publishing

TV subscriptions and license fees

Internet access

Internet spending will drive future growth

Ireland forecasted 2017 total E&M spend by segment

€3.9bn €4.6bn

2013 2017

4.2%growth

€m

PwC LLP

175

213

386

39

71

9817

2013

Television

Internet advertising

Newspaper

Consumer magazines

Out-of-home

Radio

Other

Internet advertising will surpass Television andNewspaper to attract the majority of ad spend

221

347330

39

82

10327

2017

€1.1bn

Internet moves from second to firstplace

2013 total of €1bn rising to €1.1bn but significant shift in mix

Ireland advertising spend by ownership (share of total spend)

€1bn

Consumerinsights are theheart ofinnovation

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Mining consumer insights and developing an agilebusiness model are key industry trends in E&M

http://www.youtube.com/watch?v=_hL1bvdbayg

Video: Trends impacting the E&M Sector

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Companies' ability to drive digital growth dependson innovation focused on the consumer and . . .

drivingdigitalgrowth

Consumer appetite fordigital services will driveglobal E&M growth

Leveraging richer,deeper data betweenadvertisers andconsumers

Evolution ofbusiness models to

incorporate thecuration of

communities

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. . . employing an agile business model

Content creators areincreasingly building directrelationships with consumers

Contentdistributors areincreasinglylooking to createtheir own content

Advertisers arelooking beyondthe traditionalagency model

drivingdigitalgrowth

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Find your own Outlook storyonline...

See the detail foryour sectors andgeographies atwww.pwc.com/outlook

www.pwc.com/outlook

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Extra Slides

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Breakdown of segments