Getting Personal: Putting the Me in Entertainment and Media
PwC’s Global Entertainment & Media Outlook provides a single comparable source of consumer and advertiser spending data and analysis, covering 14 core entertainment and media segments in 53 territories.
According to PwC’s Global Entertainment & Media Outlook 2019–2023, consumers are embracing the expanding opportunities to enjoy media experiences tailored to their needs, and companies are designing offerings and business models to revolve around those personal preferences. In a fundamental shift, they’re leveraging data and usage patterns to pitch their products not at audiences of billions, but at billions of individuals.
The result is an emerging world of media that’s more personal than ever before: one in which empowered consumers control their own media consumption via an expanding range of smart devices, curate their personal selection of channels via over-the-top (OTT) services and bring more media content into their lives by embracing the smart home and connected car.
It’s also an increasingly mobile world, soon to be augmented by 5G networks. As personal connections proliferate, however, consumers continue to be concerned about the safety and privacy of their data. With trust at a premium, pressure is intensifying on companies to adapt to new privacy regimes.
"The personalisation wave — fuelled by evolving customer behaviour — is set to be amplified by the forces of technology, scale, and aggressive investing and competition," explains Kurt Cappoen."As the borders separating former media silos erode, companies need to think more broadly about the areas and segments in which they operate and need to be agile in responding to technological developments such as 5G. The individual customer is the focal point, and this will not change any time soon. Hence marketers will need to allocate increasing attention to new types of content and platforms — influencers, live events, ads inside apps and more."
Total entertainment and media revenue is expected to rise at a 4.3% compound annual growth rate (CAGR) to 2023, with six segments exhibiting growth above this average and seven below it. VR maintains its position as the highest-growth segment, but after a year in which consumers’ takeup failed to meet expectations, its lead over OTT video is greatly diminished.
Podcasts and esports, which sit in larger segments, are expected to have strong revenue of 28.5% and 18.3% CAGR, respectively.
The traditional TV and home video segment is expected to have negative growth expectations for the first time, as cord-cutting occurs at ever higher rates and sales of DVDs continue to plummet. The print-exposed newspapers and consumer magazines segment are likely to be the most impacted with a CAGR of -2.3% to 2023.