global entertainment & media outlook:...

Global Entertainment & Media Outlook: 2019-2023

PwC | Global Entertainment & Media Outlook

Contents

2

Perspectives from the 2019 Outlook 1

04

Overview – Global E&M macro trends 2

07

Segment review – Spotlight on India 3

12

Q & A 4

Perspectives from

the 2019 Outlook

PwC | Global Entertainment & Media Outlook 4

Getting personal: Putting the me in entertainment and media

• The rise of increasingly personal and personalized

media interactions, as today’s consumers—eager,

highly selective, and voracious—seize the

opportunity to enjoy media experiences uniquely

tailored to their own preferences, contexts, and

schedules

• Consumers are using an expanded array of

connected devices to organize, curate and

discover their own unique world of media. In

response, companies are tailoring their offerings to

revolve around personal preferences, using data and

usage patterns to pitch their products not at

audiences of billions, but separately at billions of

individuals

• The increasingly individualized world brings major

implications for every E&M business across every

segment

Global Entertainment & Media Outlook perspectives

2019 Outlook perspectives


The rise of instant gratification: Need to engage consumers in the moment, meet them where they are

5

Meet consumers where they spend time…

Shifting behaviors are

forcing content

creators and

distributors to devise

new ways of engaging

with consumers

In voice, voice-

commerce ( V-

commerce)

Online, shoppable ads

On social media,

influencers and social

media ads

In games, marketing

on esports and gaming

On audio, audio

streaming service

providers

On OTT, blending OTT

and e-commerce


Customers are increasingly preferring to construct their own media menus and

consume content at their own pace.


The value of personal data is rising as we are entering an era of increasing personalized content

6

AI is on the rise Boosting the value of

personal data

4G is impacting across TMT

value chain

VR/Cloud Gaming and

similar other business -

introduction of 5G

Trust has become a central theme in this age of personalisation


Overview – Global

E&M macro trends

Global summary and macro trends


Global trends shaping the E&M market : seven key trends


Source: PwC Global Entertainment & Media Outlook 2019-2023, www.pwc.com/outlook

China will overtake the US to become the world’s largest smart speakers market by 2021

Asia Pacific will overtake North America as the largest OTT region by 2021

By 2023, marketers will allocate more than 50% of their budgets to digital advertising

Over the next five years, China's absolute growth will exceed that of the US for the first time

Mobile video Internet advertising is becoming increasingly important vs. total wired display

Mobile soars, with smartphone data consumption overtaking that of fixed broadband in 2020

In 2018, mobile Internet advertising revenue outweighed its wired equivalent for the first time 1

2

3

4

5

6

7


The Global E&M market to reach US$2.6trn by 2023, Digital to account for a larger share of the industry’s income

Global E&M revenue and nominal growth forecast for next 5 years*

Note: All figures are reported in nominal terms reflecting actual spending transactions and therefore include the effects of inflation


40.7% 43.9% 47% 50.5% 53.1% 55.4% 57.3% 58.9% 60.3% 61.3%

0.00

0.50

1.00

1.50

2.00

2.50

3.00

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Reven

ue

$tr

US

D


Digital revenue as % of total revenue

1.7

1.8

1.9

2.0 2.1

2.2 2.3

2.4 2.5

2.6

Reaching over

60% in 2022


In terms of individual segment market size as % of global E&M revenue, Internet advertising will see the largest gain

Segment 2018 actual 2023 forecast 2018 actual 2023 forecast

Internet Advertising 12.3% 15.8% 3.1% 4.1%

TV and Video 11.6% 9.1% 26.6% 27.3%

B2B 8.9% 8.3% 3.3% 2.7%

Newspapers and consumer

magazines 8.5% 6.2% 10.6% 7.2%

TV Advertising 7.5% 6.6% 10.6% 10.3%

Books 5.6% 4.8% 14.0% 10.0%

Video games and esports 5.4% 6.0% 2.8% 4.0%

Music, radio and podcasts 4.6% 4.3% 2.2% 2.4%

Cinema 2.0% 2.1% 4.5% 3.9%

OOH 1.8% 1.7% 1.2% 1.0%

OTT Video 1.7% 2.7% 1.7% 2.7%

VR 0.1% 0.2% - -

Share of E&M revenue by segment: 2018 vs. 2023


Note: The above table does not include Internet access data. 2018 is the latest available data. 2019-2023 values are forecast projections


Global India


(2.3)

(0.7)

1.2

1.5

2.7

3.2

3.3

4.4

5.9

6.5

9.5

13.8

22.2

3.1

11.83

4.18

10.71

6.93

13.54

8.09

8.51

16.02

18.89

17.75

21.82

-5 0 5 10 15 20 25

Newspaper and consumer magazines

Traditional TV and home video

Books

TV advertising

Business-to-business

Music, radio and podcasts

Out-of-home

Cinema

Internet access

Video games and e-sports

Internet advertising

OTT

VR

2018-2023 CAGR %

India Global

11

All segments in India are growing faster than Global; OTT video to be the fastest growing at ~22% CAGR through 2023

Segment wise Growth rate (%) CAGR 2018 - 2023

Note: 2018 is the latest available data. 2019-2023 values are forecast projections


Segment overview: India v/s Global summary

Unlike in India,

Traditional TV and

home video globally is

showing negative

growth for the first time

Segment review –

Spotlight on India


India to remain the fastest growing territory, surging at a CAGR

of 11.28% to reach US$64 Billion by 2023

India: Summary

13.5%

17.8%

18.9%

21.8%

11.3%

Music, radio and podcasts

Internet advertising

Video games and esports

OTT video

Overall E&M sector in India

Revenue growth (2018-23 % CAGR)

Overall sector vs Top 4 segments in terms of CAGR %

(excludes internet access)

• India’s OTT segment set for rapid growth as

North America, the world’s biggest OTT market

becomes increasingly mature

• India to move into the top ten global gaming

markets by consumer revenue by 2023.

• Backed by a rapid growth in Internet and

smartphone penetration, India is set to be the

second fastest growing internet advertising

market after Indonesia.

• India’s music, radio and podcasts market is ripe

for growth. The growing adoption of

smartphones and smart speakers will make all

forms of audio increasingly accessible to

listeners in the coming years.

Key highlights - India


India’s OTT video market will nearly triple in size and surpass South Korea to become the eighth-biggest market by 2023


• Improving data affordability and accessibility has made India an attractive destination for international players.

• Backed by attractive subscription rates, localized content and bundled packages, Subscription video on demand (SVOD) witnessed a 64% YoY growth in 2018.

• This segment is further expected to grow at a 23.3% CAGR from US$537mn in 2018 to US$1.5bn in 2023.

Regional 2018 revenue and growth: historical vs. forecast OTT video segment revenue 2014-2023 (US$ Bn)

38.2 45.2

72.8

2018 2019E 2023

0.6

0.8

1.7

2018 2019E 2023

NORTH AMERICA

EMEA

APAC

LATIN AMERICA

UK

INDIA

8%

10%

12%

14%

16%

18%

20%

22%

24%

26%

0% 15% 30% 45% 60% 75%

20

18

-20

23

CA

GR

2014-2018 CAGR

Deep dive: OTT video

84% 86% 89%

16% 14% 11%

0%

20%

40%

60%

80%

100%

Subscription VOD Transactional VOD

Subscription VOD vs transaction VOD

(% share of overall OTT market)

80% 81% 85%

20% 19% 15%

0%

20%

40%

60%

80%

100% India Global

India Global



While OTT video market is rapidly growing in significance, TV subscription will remain by far the biggest market in India.

• In India, cord cutting is not happening as

much as it is in the US

• Growth in OTT video will continue to

outstrip the growth rate of TV subscription

and cinema, as major players such Netflix

and Amazon set sights on India for their

next cycle of subscriber growth.

• The rise of OTT services has galvanised

operators into launching premium

products and enticements such as Ultra

HD, 4K, video-on-demand services and

next-generation set-top boxes.

8.5%

11.9%

21.8%

Cinema

TV subscription

OTT

20%

11%

5%

8%

5%

1%

10%

9%

8%

12%

14%

19%

70%

79%

87%

81%

81%

80%

2023

2018

2014

2023

2018

2014

OTT Cinema TV subscription

TV subscription, OTT, cinema: % revenue share of

combined video content segment)

Video content revenue growth % CAGR 2018-2023: India

Deep dive: OTT video

India

US


Internet advertising continues to grow as media players and advertisers shift greater attention to online distribution

Note: 2018 is the latest available data. 2019-2023 values are forecast projections


Internet advertising revenues vs other advertising revenues, 2014 vs. 2023 (% share)

2014 2023

Internet

advertising

27.0%

Other

advertising

73.0%

Internet

advertising

54.7%

Other

advertising

45.3%

Global

Internet

advertising

11.0%

Other

advertising

89.0%

Internet

advertising

22% Other

advertising

78%

India

Deep dive: Internet advertising

• Total Internet advertising revenue for

India in 2018 was US$1.2bn,

expected to reach US$2.6bn by 2023.

• While in India, Internet advertising

happens to be the fastest growing ad

segments, TV advertising will still hold

the largest share of ad revenues

throughout the Outlook period.

• India’s TV advertising will become the

world’s top TV advertising markets

overtaking the UK, Germany, France

and Brazil during this period.


Music, radio and podcasts an “emerging” segment in India; to surpass US$1.5 Billion by 2023


• With streaming services finally germinating, music to be a fast growing segment at a 13.8%

CAGR, to hit US$0.7bn by 2023.

• According to the International Federation of the Phonographic Industry (IFPI), 96% of

smartphone users in India are using their devices to listen to music, highest rate in the

world. This figure climbs to 99% for 16–24-year-olds.

• Ease of voice search coupled with increasing penetration of smart speakers will further drive

revenues over the next 5 years.

Deep dive: music, radio and podcasts

Sub-segment wise revenue (US$ Mn): India

0

100

200

300

400

500

600

700

800

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Radio Music Podcast Advertising

11.5%

13.8%

58.9%

2018-23

CAGR

Digital music streaming

CAGR = 24.27%

Music, radio and podcasts segment revenue

2014-2023: Global vs India

87 100

117

0

20

40

60

80

100

2014 2018 2023

Reve

nu

e $

bn

US

D

Global

0.6

0.8

1.6

0

1

2

2014 2018 2023

Reve

nu

e $

bn

US

D

India

Note: * defined as people who listened to at least one podcast in the last month


25% 12%

70% 85%

4% 3%

0%

20%

40%

60%

80%

100%

2018 2023 E-sports

Game Advertising

Social/ casual games

Traditional gaming

18


By 2023, App-based social/casual gaming to account for 85% of India’s US$2.5 Billion video games & esports market

0

500

1,000

1,500

2,000

2,500

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

US

$ M

n

Social/ Casual Traditional

• The growth in social/casual gaming is

attributable to app-based gaming, as

browser-based games continue their

decline.

• Growth will continue for the category as

the smartphone user base expands.

• Data usage is expected to rise from

1.4GB for each active phone a month in

2016 to 7GB by 2021.

• India’s esports segment is small at

present. However, improving online

infrastructure and rising sponsorships

may provide impetus for growth.

Video game consumer revenue (US$ Mn): India

Deep dive: video games and esports

% Share of sub-segment revenue: Global vs. India

Global India

44% 42%

52% 53%

4% 4%

0%

20%

40%

60%

80%

100%

2018 2023

US$2.1 Bn

US$0.3 Bn

<1% <1%

pwc.com/outlook

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