Global Entertainment & Media Outlook 2019-2023

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.

It’s getting personal

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.

African American woman listening to music on her headphones

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."

Global growth in E&M revenues

  • 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.

Four priorities shaping companies' strategies

One size does not fit all

As companies approach both markets of individuals and individual geographic markets, they are finding that it makes sense to present different options: all-you-can-eat offerings with unlimited usage in some areas, tiers of payments for different services in less developed markets, and competing on affordability.

Meanwhile, across all markets — mature and developing — PwC’s research finds stark differences in terms of segment growth.

The number of consumer touch points is expanding

As media and e-commerce experiences become more personal, gratification for consumers is becoming more instant and immediate. In response, content creators and distributors are devising new ways to appeal to consumers as individuals and marketers are figuring out how to meet consumers at the point of consumption and point them instantaneously towards purchase.

Witness the rise of shoppable online advertising, often promoted by ‘influencers.’ Voice is also becoming a key form of interaction for both search and shopping, supported by the rise of smart speakers.

Technological innovation introduces a new era of personalised computing

Companies are leveraging AI’s ability to understand people’s individual tastes and consumption habits to offer up the content individual users find most compelling. The combination of AI with 5G will be especially powerful, as it will fuel the rapid growth of segments such as video games and VR.

The Outlook forecasts show video games' compelling combination of growth and scale, while VR will be the fastest-growing segment overall.

Trust and regulation remain pivotal, as personal data hygiene becomes key

With consumers moving to the centre of their own world of media experiences, their personal data — from the music they stream and the news they read to the products they buy — is taking a central role. In the emerging world, maintaining personal data hygiene is becoming key to the overall health of the E&M ecosystem.

For companies, this goes beyond regulatory compliance, which is merely table stakes, and extends to building trust by behaving transparently and responsibly with customers’ data, ensuring the accuracy of news, and being sensitive to concerns around issues such as digital addiction.

Contact us

Kurt Cappoen

Partner, PwC Belgium

Tel: +32 9268 8246

Mieke Van Leeuwe

Director, PwC Belgium

Tel: +32 02 710 4257

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