- PwC’s 17th annual Australian Entertainment & Media Outlook forecasts the industry growing at 3% a year.
- Subscription television, including online streaming, is the fastest at 10.1% a year.
- Internet advertising market is forecast to reach $12,681 million or 65% of the total advertising market in 2022.
Australia’s entertainment and media industry will grow by 3% a year for the next five years, with digital sectors outstripping traditional media, according to forecasts by PwC.
PwC’s 17th annual Australian Entertainment & Media Outlook shows the subscription television market, including online streaming, as the fastest growing segment in spending, forecast to grow at 10.1% a year to 2022, followed by internet advertising at 7.7%.
Megan Brownlow, PwC Australia’s Entertainment & Media Industry Leader, says companies must measure and capitalise on their trust assets.
“Numerous breaches of trust by corporates in Australia and globally over the last year have soured relationships with consumers,” she says.
“Companies that get the consumer trust piece right will take it to the bank and boost investor and regulator confidence.”
She identifies the trust drivers as:
Advocacy – are you acting in my best interests?
Consistency – have you proved credible before?
Transparency – do I really understand what you’re doing?
Success – do you have what it takes to help me achieve my goals?
“Consistency is a particularly powerful trust driver for traditional media because they have a longer organisational legacy,” she says.
PwC’s Australian Outlook shows growth is broad-based but unevenly distributed across the industry, with the fastest revenue growth in digitally driven segments.
The internet advertising market is forecast to reach $12,681 million or 65% of the total advertising market in 2022 and will overtake the internet access market ($11,507 million) for the largest segment in the entertainment and media industry.
Video advertising, at an annual growth rate of 23.8%, will see the segment account for 25% of the total internet advertising market by 2022.
How video on demand is growing, free-to-air broadcasting is shrinking and transactional video-on-demand is falling:
Digital music is expected to grow at 10.2% a year, helping the total music market which is expected to rise at 5% a year and attract 6.4% ($1.79 billion) of consumer spend by 2022.
Howver, PwC Australia has forecast the newspaper, free-to-air television, magazine and filmed entertainment spending markets will reduce in size from 2017 to 2022.
Podcasting and interactive gaming are outperforming other consumer-funded entertainment sectors such as music and filmed entertainment.
“Podcasting is fast becoming a consumer favourite, propelling growth in the radio sector,” says Brownlow. It’s forecast to more than double revenue over the next five years, growing at an impressive 85.9%.
The podcast monthly listeners forecast is expected to more than double to 8.9 million in 2022. The advent of voice-activated smart speakers, especially in the home, will also boost music-listening opportunities for Australian artists and labels.
The interactive games market also shows signs of strong growth into 2022, with an expected annual growth of 5.1%. The sector is forecast to attract 11.8% of the total Australian consumer spend in 2022.
“Growth in attention to eSports and recognition of its audiences’ high disposable incomes is attracting the interests of marketers,” she says.
The total eSports market is forecast to be $21 million in 2022, up from $8 million in 2017.
“The next wave of supporting infrastructure, including greater cloud usage and fifth generation wireless systems otherwise known as 5G, will enable hardware and software improvements to drive future growth in the interactive games market,” she says.
Growth in digital music is also propelling the total music market, which is expected to rise at a 5% a year and attract 6.4% ($1.792 billion) of consumer spend by 2022.
However, PwC Australia has forecast the newspaper, free-to-air television, magazine and filmed entertainment spending markets will all reduce in size.
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