the collaborative future: reshaping for ... · global entertainment & media outlook marcel...

Global entertainment & media outlook Marcel Fenez Global Leader, Entertainment & Media

The collaborative future: reshaping for consumer relevance and engagement Lisbon, 30 September 2011

www.pwc.com/pt

PwC

Internet access spending

Internet advertising

TV subscriptions and license fees

Television advertising

Recorded music

Filmed entertainment

Video games

Consumer magazine publishing

Newspaper publishing

Radio

Out-of-home advertising

Consumer and educational book publishing

Business-to-business

Agenda

Slide 2

30 Setembro 2011 Global Entertainment & Media Outlook 2011-2015

2010: the E&M industry emerges from recession

PwC

-10.0 -5.0 0.0 5.0 10.0 15.0 20.0

Recorded Music

Business-to-Business

Newspaper Publishing

Consumer Magazine Publishing

Consumer and Educational Book Publishing

Filmed Entertainment†

Out-of-Home Advertising

Total

Radio

Video Games

TV Subscriptions

Internet Access

TV Advertising

Internet Advertising

Actual growth Projected growth

2010 growth: stronger than expected

Note:1 does not include cinema advertising

1

Slide 4


The Outlook to 2015

PwC

Entertainment and media growth rates 2011 – 2015 (Globally 5.7% CAGR)

Slide 6


PwC

Entertainment and media growth rates 2011 – 2015

US

4.6% France

4.0%

Germany

3.4% UK

3.7%

Japan

2.5%

Mature: 3.9%

Slide 7


PwC


US

4.6% France

4.0%

Germany

3.4% UK

3.7%

Japan

2.5%

China

11.6%

Russia

11.7%

India

13.0%

Brazil

11.4%

Mature: 3.9% BRIC: 11.7%

Slide 8


PwC


US

4.6% France

4.0%

Germany

3.4% UK

3.7%

Japan

2.5%

China

11.6%

Russia

11.7%

India

13.0%

Brazil

11.4%

Turkey

13.2%

MENA

16.1%

South Africa

9.2%

Indonesia

11.9%

Pakistan

23.7%

Vietnam

17.3%

Columbia

11.2%

Mexico

8.7%

Mature: 3.9% BRIC: 11.7% Golden8: 12.7%

Slide 9


PwC

Growth by segment

-4 -2 0 2 4 6 8 10 12 14 16

Recorded Music

Newspaper Publishing

Consumer and Educational Book Publishing

Consumer Magazine Publishing

Radio


Out-of-Home

Filmed Entertainment

TV Advertising

TV Subscriptions

Video Games

Internet Access

Internet Advertising

% CAGR 2011-2015

Portugal Global

Slide 10


PwC

Broadband penetration Mature vs. BRIC vs. Golden 8

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mature Portugal Golden 8 BRIC

Slide 11


PwC

Mobile penetration (Mobile Internet/Wireless Subs)

Mature vs. BRIC vs. Golden 8

0%

10%

20%

30%

40%

50%

60%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mature Portugal Golden 8 BRIC

Slide 12


PwC

Smart devices drive spending on E&M content

0

200

400

600

800

1000

1200

1400

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Un

it s

ale

s -

millio

ns

e-Reader Tablet Smartphone

Slide 13


Advertising spending

PwC

Advertising revenues to 2015

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2011 2012 2013 2014 2015

US

$ m

illio

ns

Mature BRIC Golden 8 Portugal

3.9%

12.8%

8.9%

2.9%

CAGR 2011-2015

Slide 15


PwC

Advertising revenue growth to 2015

0 2 4 6 8 10 12 14

Portugal

Mature

Golden 8

BRIC

%CAGR 2011-2015

Slide 16


PwC

Digital advertising global share 2010 and 2015

Digital; 15.9%

Non-digital; 84.1%

Digital; 22.5%

Non-digital; 77.5%

2010 2015

Slide 17


PwC

Digital vs. non-digital advertising Mature vs. BRIC vs. Golden 8

18.4%

26.2%

11.0%

17.3%

3.2% 6.2%

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2015 2010 2015 2010 2015

Mature BRIC G8

Mature vs. BRIC vs. G8 Advertising Digital vs. Non Digital

Non-digital Digital

Slide 18


PwC

Global advertising spending by segment

Other 9%

Out-of-Home 6%

Consumer Magazines -

print 6%

Radio 7%

Digital advertising

16%

Newspapers - print 18%

Television - excl. mobile and online

38%

Other 6% Out-of-Home

6% Consumer Magazines -

print 6%

Radio 6%

Digital advertising

23%

Newspapers - print 15%

Television - excl. mobile and online

38%

2010 2015

By platform

Slide 19


PwC

Global advertising spending by segment

2010 2015

By ownership

Other 11%

Out-of-home 6%

Consumer magazines

6%

Radio 7%


12%

Newspapers 20%

Television 38%

Other 9%

Out-of-home 6%

Consumer magazines

6%

Radio 6%


16%

Newspapers 17%

Television 40%

Slide 20


PwC

Portugal advertising spending by segment

2010 2015

Television 52%

Consumer magazines

17%

Out-of-home 10%

Newspapers 7%

Directories and trade

magazines 5% Radio

5%


3%

Other 1%

Television 54%

Consumer magazines

15%

Out-of-home 10%

Newspapers 7%


5% Radio

4%

Directories and trade

magazines 3%

Other 2%

Slide 21


Consumer/end-user spending

PwC

Global consumer spending growth

-2

0

2

4

6

8

10

Vid

eo

ga

me

s

TV

su

bscrip

tion

s

an

d lic

en

se

fee

s

Film

ed

en

terta

inm

en

t

Bu

sin

ess-to

-bu

sin

ess

Rad

io

Con

su

me

r an

d

ed

uca

tion

al b

oo

ks

New

sp

ap

ers

Con

su

me

r ma

ga

zin

es

Reco

rde

d m

usic

%C

AG

R 2

011

-2015

Slide 23


PwC

Digital consumer spending Mature

2010 2015

Digital 6%

Non-digital 94%

Digital 11%

Non-digital 89%

Slide 24


PwC

Digital consumer spending BRIC

2010 2015

Digital 10%

Non-digital 90%

Digital 16%

Non-digital 84%

Slide 25


PwC

Digital consumer spending Golden 8

2010 2015

Digital 4%

Non-digital 96%

Digital 6%

Non-digital 94%

Slide 26


PwC

Global consumer spending in 2015 Digital vs non-digital

0 50 100 150 200 250 300

Radio

Recorded Music

Consumer Magazines

Newspapers

Video Games

Filmed Entertainment

Consumer and Educational Books


TV Subscriptions and License Fees

$billion

Digital 2015 Non-digital 2015

Slide 27


PwC

Consumer spending in Portugal - growth to 2015

-4 -2 0 2 4 6 8 10

Consumer magazines

Consumer and educational books

Newspapers

Business-to-business

Filmed entertainment

Radio

Video games

TV subscriptions

%CAGR 2011-2015

Recorded music

Slide 28


PwC

Digital Share of total E&M revenues Portugal vs. other markets

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Ireland

Germany

France

Mature

UK

Global

BRIC

Portugal

Spain

Golden 8

Digital share of E&M revenues

2010

2015

Slide 29


The collaborative future... ... reshaping for consumer relevance and engagement

PwC

1. The digitally

empowered consumer

2. The involved advertiser

3. Collaboration: the route to competitive advantage

Slide 31


A „golden age‟ for the digitally empowered consumer

01

PwC

What will people pay for?

Leads to sustainable, profitable and engaged relationships with the consumer

Convenience

Experience

Quality

Participation

Privilege

Advantages outweigh attractiveness of free and pirated content

Slide 33


PwC

Streaming

Ownership

How do people access?

Storage in the cloud

Storage on device

Slide 34


The involved advertiser

02

PwC

What does an „involved advertiser‟ look for?

• Engagement with ‘digital natives’ in their own space, e.g. social media.

• Personalised interaction.

• Compelling content and intensity of experience.

• Cross-platform reach – new devices and channels.

• Verifiable evidence of consumer engagement.

Slide 36


PwC

Greater involvement is being achieved by...

• Social media creates social intelligence.

• TV and Video Games’ strength comes from cross-platform integration.

• Location-based marketing and addressable advertising.

• Digital billboards and smartphones offer interactive experiences.

• Advertisers are collaborating, experimenting and innovating.

Slide 37


Collaboration: the route to competitive advantage

03

PwC

Operating model for the digital future: the Collaborative Digital Enterprise

“An enterprise that is

dynamic, interconnected,

and continuously engaged

with its entire customer,

employee and supplier

ecosystem , through

technology”

Slide 39


PwC

The route to success in the emerging digital environment

Data

Demand

Digital

Slide 40


PwC

Imperatives for future success

Data mining

Data security

Future-proofing content

End-to-end digital workflow

Digital talent management

Slide 41


PwC

Questions The complete picture: www.pwc.com/outlook

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