Posted on : June 28, 2018
Views : 2
Category : Marketing
Ennèl van Eeden, Global Entertainment and Media Leader at PwC walks through this year’s Outlook themes, segments, and trends. Understanding where consumers and advertisers are spending their money in the entertainment and media (E&M) industry can help inform many important business decisions. The evolving media ecosystem is experiencing a new wave of convergence. To succeed in the future, companies must re-envision every aspect of what they do and how they do it. It’s about having, or having access to, the right technology and excellent content delivered in a cost-effective manner, to an engaged audience that trusts the brand.
  1. TV and Video: Subscription TV revenue of US$98.9bn in 2017 will contract at a -1.3% CAGR to US$92.7bn by 2022 due to a mature market and cord-cutting, largely resulting from SVOD competition.
  2. Cinema: Total cinema revenue in the US will remain stable through 2022 in spite of unstable market conditions. We can expect to see modest revenue growth over the forecast period at a 1.8% CAGR, reaching US$12.3bn by 2022.
  3. Over-the top (OTT): The US is the largest over-the-top (OTT) video market globally, accounting for more than half (55.6%) of all OTT revenue in the world in 2017. OTT video revenue in the US reached US$20.1bn in 2017 after 15.2% year-on-year growth. Although rates will slow as the market matures, further expansion at an 8.8% CAGR will produce revenue of US$30.6bn in 2022.
  4. Virtual Reality: The US is the world’s leading VR market with revenue of US$1.5bn in 2017, an increase of over 250% year-on-year, and expected revenue of US$7.2bn by 2022. Gaming remains the primary application of VR, accounting for 61% of total VR content revenue in the US in 2017.
  5. Video games and e-sports: Total video games revenue in the US was US$23.4bn in 2017, up from US$15.2bn in 2013, and it is forecast to grow by a 4.5% CAGR to reach US$29.2bn in 2022. Particularly, PC gaming is undergoing somewhat of a resurgence.
  6. Internet advertising: The US continues to lead the global Internet advertising market, with total revenue of US$88.0bn in 2017 –equivalent to nearly 40% of the global total. The market will continue to experience growth over the forecast period, expanding at a 7.7% CAGR between 2017 and 2022 to reach a value of US$127.4bn.