global entertainment and media outlook 2019-2023...pwc expected global growth in e&m...

Global Entertainment and Media Outlook 2019-2023

PwC


2

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 esports

Virtual reality

Data consumption

$Consumer/end-user & advertising spending

5 Year historical & 5 Year forecast data 53 Countries 15 Segments

trends?

global

are the

What

PwC

Expected global growth in E&M expenditures of 4.3%


4

BRIC: 6.2 %

Mature: 3.2 %

Scandinavia

3.3 %Russia

6.5 %

UK

3.5 %

France

2.3 %

Germany

2.6 %

US

3.7 %

Brazil

5.5 %

India

11.3 %

China

5.6 %

Japan

2.2 %

Global

4.3 %

PwC

- 10 20 30 40 50 60

Rest of world

Greater China

United States

Rest of world

Greater China

United States

Global Top 100

Top 100 unicorns

The growing number of unicorns in China alters theglobal power balance


5

#of companies

PwC

Virtual reality and OTT video are expected to lead growth across media segments in the Global E&M market towards 2023


6

1.2%

-0.7%

-1.8%

3.4%

5.9%

13.8%

4.4%

2.7%

3.2%

6.5%

9.5%

1.5%

-2.6%

22.2%

Internet access

Books

Newspaper

Magazines

Music, radio and podcasts


TV advertising


Video games and e-sports


Cinema

Out-of-home

OTT video

Virtual reality

PwC

The global giants within internet access and internet advertising will continue to dominate


7

150 000

100 000

50 000

0

-50 000

-2% 0% 2% 4% 6% 8% 10% 12%-4%

Internet access

OTT videoVideo games &

E-sports


TV advertising

Newspaper

To

tal g

row

thin

US

Dm

illio

ns

CAGR 2018 - 2023

200 000

14% 16% 18% 20% 22%

VR

Global revenue growth 2018-2023F

- Putting the me in entertainment

Getting personal

PwC

The central theme of the growing world of media is that it’s personal

DateGlobal Entertainment and Media Outlook 2019-2023

9

Five steps towards personalisation

Know each customer

Evolve your business

Build your capabilities

Focus on perceived user experience

Understand that context is king, too

PwC

Personalisation pushes companies to strive to recognize and understand consumers as complex individuals – and their own terms

10


…boosting the value of personal data

• The value of personal data is rising hand in hand

with AI

• A distinct person lies behind every user ID and

customer account

• People are increasingly aware of their personal

data

30% say their streaming

services recommend the same

content over and over again

21% think their

streaming services know what

they want to watch better than

they do themselves

in Scandinavia?

What are the trends

PwC

OTT video and internet access are expected to lead growth across media segments in the Scandinavian E&M market towards 2023


12

-2.7%

-2.9%

-4.1%

1.8%

11.0%

2.6%

6.9%

2.4%

-0.3%

1.5%

3.5%

5.5%

-0.6%

Internet access

Books

Newspaper

Magazines

Music, radio and podcasts


TV advertising


Video games and e-sports


Cinema

Out-of-home

OTT video

PwC

New spending will flow into rapidly growing segments such as OTT video and video games


13

3 000

2 000

1 000

0

-1 000

-2 % 0 % 2 % 4 % 6 % 8% 10% 12%-4 %

Internet access

OTT videoVideo games


TV advertisingNewspaper

Gro

wth

in

US

Dm

illio

ns

CAGR 2018 - 2023

4 000

14%

Scandinavian revenue growth 2018-2023F

One size does not fit all

PwC

Digital

Other connected devices

0:33

Total per day = 12 hours 1 minute

In order to understand where digital marketing is going next, it is crucial to look at where attention is going


15

TV

3:58

Radio

1:26

Other

0:45

Digital

5:53

Mobile

(nonvoice)

3:17

Desktop/

laptop

2:03

Source: eMarketer

PwC

The global video game industry is projected to grow by 37 percent between 2019 and 2023


16

0

20 000

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

US

D i

n m

illio

ns

Video game revenue

Video games advertising 6.6 %

Social/casual video

gaming7.2%

Traditional video gaming5.5 %

2018 – 2023F CAGR

6.5%

Esports 18.3%

PwC

On demand video services will continue to drive the growth of the Scandinavian filmed entertainment market


17

-

500

1 000

1 500

2 000

2 500

3 000

2014 2015 2016 2017 2018 2019F 2020F 2021F 2022F 2023F

US

D in m

illio

ns

Scandinavian filmed entertainment revenues

2018 – 2023F CAGR

6.8 %

Physical home video -16.4%

Electronic home video 2.7 %

OTT video 11.0 %

Cinema tickets 2.0 %

PwC

As viewers expect individual entertainment the platform shifts digital


18

Scandinavian OTT revenues as at total of TV revenues

2014

6%

2015

9%

2016

11%

2018

15%2017

13%

2019

20%

2020

22%

2021

24%

2022

26%

2023

28%

Scandinavian OTT revenues as % of total revenues in Traditional TV and OTT

Scandinavian OTT revenues as % of total revenues in Traditional TV and OTT

(projected data)

PwC

Live and digital music will continue to grow and evolve new platforms


19

-

500

1 000

1 500

2 000

2 500

2014 2015 2016 2017 2018 2019F 2020F 2021F 2022F 2023F

US

D in m

illio

ns

Total music revenue in Scandinavia in million USD 2018 – 2023F CAGR

Physical music -0.5%

Live music 3.2 %

Digital music 3.8 %

2.7 %

PwC

Internet advertising continue to grow, driven by mobile and video


20

Banner/display21 %

Search 31 %

Classified16 %

Video 5 %

Mobile27 %

2018

Banner/display17 %

Search 27 %

Classified13 %

Video 4 %

Mobile39 %

2023F

5 673

USD millions

CAGR 3.5%

Scandinavia internet advertising by sub segment

4 777

USD millions

PwC

The mobile user experience is shifting to a world of apps and platforms


2018

Facebook &

Google 57.7%

2020

Other

44.1%

Facebook &

Google 55.9%

Other

42.3%

Of the internet time spent on

smartphones is on apps.

Funds follow attention

Of the time spent on apps is spent

in the 10 most popular apps.

The average time per day US

adults spent on mobile devices

in 2018

Share of total US digital ad spending

3.5h

90%

97%

computing and trust

The new era of personalised

PwC

85 % of CEOs agree that AI will significantly change the way they do business in the next five years.

Close to two-thirds of global CEOs see AI as bigger than the internet.

22nd Annual Global CEO Survey

PwC


23

Trust in the digital world

The value of personal data is rising hand in hand with AI

of consumers say they should be

able to control the information

available about them on the

internet

of directors are very confident their

company has a comprehensive

program to address data security

and privacy

of consumers will not do business

with a company if they have

concerns about its security

practices85%

92%

44%

PwCPwC

Presentation Title

24

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pwc.com

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International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as

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member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of

any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member f irm or PwCIL in any way.

Eivind Nilsen

Partner

952 60 832

[email protected]

Øystein B. Sandvik

Partner

952 60 415

[email protected]

global entertainment and media outlook 2019-2023...pwc expected global growth in e&m...

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