Recovery of entertainment and media revenues worldwide

The global entertainment & media industry is recovering, following the negative effects of the pandemic, according to the 22nd annual PwC survey “Global Entertainment & Media Outlook 2021-2025”

The industry is valued at over 2 trillion. and is expected to grow by 6.5% in 2021 and 6.7% in 2022, fueled by strong demand for digital content and advertising.

This return to growth comes after the difficult period of 2020, when live entertainment fell dramatically, recording a 71% drop in movie ticket revenue due to the pandemic.

PwC’s study “Global Entertainment & Media Outlook 2021-2025” focuses on the analysis and forecast of consumer and advertising spending in the Entertainment & Media sector and takes into account data from 52 countries.

The following are the most important findings:

– Reduction by 3.8% of the revenues of the Entertainment & Media sector, worldwide from 2.1 trillion. USD in 2019 at 2.0 trillion. in 2020, marking the largest annual decline in the 22 years since the publication of this report. However, there are some bright exceptions associated with parts of the industry, which are the result of a shift in consumer demand.

– The growth of the global revenues of the Entertainment & SME sector is expected between 2021 and 2025, with an average annual growth rate (CAGR) of 5%, raising the revenues of the sector to 2.6 trillion. In 2025. In Greece over the same period, revenues are estimated to reach $ 6.47 billion with an average annual growth rate (CAGR) of 6.26%.

– The classic TV / home video segment remains the largest consumer segment of the Entertainment & Media sector ($ 291 billion). However, it is expected to continue to shrink over the next five years (-1.2% average annual growth rate). However, it shows an increase at the local level in the same period (2.4% average annual growth rate)

– There is a launch of video streaming services during 2020 with the growth trend continuing. Streaming video-on-demand (SVOD) is projected to grow at an average annual growth rate of 10.6% in 2025, raising the value of the industry to At the same time, movie revenues are projected to recover in 2021, with the lifting of lockdowns, but without returning to pre-pandemic levels before 2024.

Revenues from video games and e-sports continue to rise rapidly, reaching $ 147.7 billion in 2020, with an average annual growth rate of 5.7% which is projected to expand the industry to $ 200 billion. USD by 2025.

– Virtual reality (VR) is the fastest growing segment of the Entertainment and SME industry, although it starts from a low base. Revenue in the category jumped 31.7% in 2020 to $ 1.8 billion and is projected to maintain an average annual growth rate of over 30% over the next five years, with related activities reaching 6.9 billion $ in 2025.

– Strong growth is also expected for the music sector, following a significant drop of 74.4% in live music revenue in 2020. In addition, an increase is projected for total music revenue with an average annual growth rate of 12.8 % over the next five years, driven by digital streaming, with activities reaching $ 29.3 billion by 2025, coinciding with a return to live gaming.

– 9% increase in online advertising spending, reaching $ 336 billion in 2020, surpassing non-online advertising spending for the first time, with an average annual growth rate of 7.7% over the next five years.

– In 2020, 34% of spending on entertainment & media was related to internet access, while it is expected to increase with an average annual growth rate of 4.9%, reaching 880 billion dollars in 2025 from 694 billion dollars. in 2020. Mobile internet access is expected to boost market growth, with an average annual revenue growth rate of 6.1% approaching $ 605 billion in 2025 from $ 449 billion in 2020, thanks to the spread of 5G, developments in device technology and premium content packages.

As for the younger consumers, it is not surprising that many have little awareness or interest in the traditional media. Instead, platforms designed for young consumers or with the potential for authentic lightweight content have been launched.

Gaming plays a key role for young people and is becoming an important factor in data consumption – in fact it seems to be the fastest growing category of content, accounting for 6.1% of total data consumption worldwide by 2025 and growing by 4.7% of 2020.

Also, another issue that determines the wider landscape of Entertainment and SMEs, are the regulatory changes as well as the regulatory control of the big technology companies. Antitrust pressures have increased, as evidenced by calls for the break-up of major technology platforms and government proposals to define a regulatory framework for new media. Changes to existing regulatory regimes are inevitable, and it is important for industry stakeholders to include regulatory risk in their design processes.

Source: by

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