Global Entertainment and Media Outlook 2018-2022€¦ · The current size of the Smart Speaker...
Transcript of Global Entertainment and Media Outlook 2018-2022€¦ · The current size of the Smart Speaker...
Global Entertainment and Media Outlook 2018-2022
www.pwc.com/outlook
PwC’s Digital Services 2
$Consumer/end-user & advertising spending
5 Year historical & 5 Year forecast data 53 Countries 15 Segments
www.pwc.com/outlook
Books
Business-to-business
Cinema
Internet access
Internet advertising
Magazines
Music, radio and podcast
Newspaper
OTT video
Out-of-home advertising
Traditional TV and home video
TV advertising
Video games and e-sports
Virtual reality
Data consumption
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What are the Global Trends?
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Expected global growth in E&M expenditures of 4.3%
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BRIC: 7.5 %
Mature: 3.1 %
Scandinavia3.3 %
Russia8.8 %
UK 3.2 %
France 2.2 %
Germany 2.0 %
US3.5 %
Brazil5.3 %
India11.6 %
China7.2 %
Japan2.3 %
Global4.3 %
PwC’s Digital Services
Internet advertising and internet access are expected to lead growth across media segments in the Scandinavian E&M market towards 2022
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Internet access
Books
Newspaper
-0.3%
-2.2%
-4.6%
Magazines
Music, radio and podcasts
Traditional TV and home video
TV advertising
Business-to-business
Video games and e-sports
Internet advertising
2.3%
8.2%
2.8%
8.2%
2.5%
1.5%
2.4%
5.3%
6.8%
0.9%
Cinema
Out-of-home
OTT video
Scandinavian growth by segment 2017-2022F
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Smart Speaker market will grow by more than 20% per year due to broad personal and commercial adoption
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Smart Speaker Market size is projected to exceed $30 billion in 2024, with a cumulative annual growth rate of more than 20%
>20%
High growth expectations
>26%The growth in commercial applications is projected to be even higher, with an estimated cumulative annual growth rate of more than 26%
>4.5The current size of the Smart Speaker Market is more than $4.5 billion, according to Global Market Insights
Source: Global Smart Speaker Market Size worth over $30bn by 2024 (2018) Global Market Insights, Inc.
Customer demand due to improved quality and personlisation will overtake the productivity gains
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The sources of revenue in the E&M space are changing all over the worldand players need to adapt to be able to tap into the new sources of growth
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0 100 200 300 400 500 600 700 800
Internet access
Traditional TV and home video
Internet advertising
Business-to-business
TV advertising
Newspaper
Books
Video games and e-sport
Music, radio and podcast
Magazines
Cinema
Out-of-home
OOT video
Virtual reality
2022 2017 2013Revenue streams that nourished
companies in the past will not be flowing with the same force in the future
USD in billions
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The distinctions among varieties of media are collapsing
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Announced deal values increased by 197% in the first half of 2018, fueled by megadeal activity
Internet & Information
Telecommunications
Cable
Broadcasting
Recreation & leisure
Film & Content
Advertising & Marketing
Publishing
Music
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97
41
5
26
30
33
143
54
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Deal volume Deal value ($M)
H1 2018 US announced deal volume and value by subsector
30 673
29 255
10 522
5 514
2 320
1 707
1 361
1 057
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Source: PwC Deals US Technology Deals insights Q2 2018
§26.8billion USD
Largest mergers
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The forces driving convergence will lead to emergence of supercompetitors
A group of global supercompetitors that are involved in most, if not every, segment of E&M
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Convergence towards similar business models will unite content, commerce, advertising, communications and deep financial resources
Supercompetitors can buy content, invest in startups and serve as buyers for maturing businesses
..combined hold a share of 57% of digital advertising revenue in the US
..deliver 25% of all the packages in the US..
..and it is expected to be 50% in 2020
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Reinventing Media Business Models and the Revenue Stream Revolution
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The global video game industry is projected to grow by 28 percent between 2018 and 2022
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20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F
US
D i
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Global video games
Video games advertising
7.3 %
Social/casual vide gaming 9.2 %
Traditional video gaming 4.7 %
2017 – 2022F CAGR
7.1%
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500
1 000
1 500
2 000
2 500
3 000
2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F
US
D i
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Scandinavian filmed entertainment revenues
On demand video services are expected to drive the growth of the Scandinavian filmed entertainment market
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2017 – 2022F CAGR
4.2 %
Cinema tickets 2.6 %
OTT video 6.8 %
Electronic home video 3.7 %
Physical home video -8.2 %
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200
400
600
800
1 000
1 200
1 400
1 600
1 800
2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F
US
D i
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Linear and online TV advertising in Scandinavia
Online TV advertising is expected grow rapidly towards 2022
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2017 – 2022F CAGR
2.4 %
Online TV 14.6 %
Linear TV 1.2 %
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1 000
2 000
3 000
4 000
5 000
6 000
2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F
US
D i
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Scandinavian Newspaper Market
Newspapers succeed by encouraging a membership mind-set
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2017 – 2022F CAGR
-4.6 %
Print advertising -8.8 %
Digital advertising 3.7 %
Print circulation -6.5 %
Digital Circulation 13.8 %
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100 000
200 000
300 000
400 000
500 000
600 000
700 000
2013 2014 2015 2016 2017 2018F 2019F 2020F 2021F 2022F
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Global data consumption
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The amount of data consumed globally is expected to grow annually by more than 25%
2017 – 2022F CAGR
Fixed broadband 18.8 %
Other portable 21.8 %
Tablet 25.9 %
Non-smartphone 12.4 %
Smartphone 33.3 %
25.1 %
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TRUST
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74%
57%
The rising importance of data is pushing trust to an even more central position
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Is your content trustworthy?
Is your audience who you say it is?
Are you taking proper care of the data?
Are your investments paying off?
Is your company good for society?
Five vital dimensions of trust 76% of CEOs said
potential for biases and lack of transparency were impeding AI adoption in their enterprises
PwC CEO Pulse Survey 2017
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E&M CEOs remain optimistic about
longer term prospects, but are more concerned
about digital disruption than CEOs across all industries
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of E&M CEOs are confident about their companies revenue
growth over the next 3 years
94 %
of E&M CEOs said changes in consumer behaviour would be
«somewhat or extremely disruptive»
86 %
of E&M CEOs said changes in distribution
channels would be «somewhat or
extremely disruptive»
69 %
of E&M CEOs are extremely concerned
about over-regulation
34 %
of E&M CEOs are confident about their companies revenue
growth over the next 3 years
81 %
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Contact us!
Eivind Nilsen
Partner
952 60 832
Øystein B. Sandvik
Director
952 60 415
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