The professional services network PwC has published the “Global Entertainment & Media Outlook 2019-2023”, a five-year projection of consumers and advertisers spending data across 14 segments and 53 territories. Here an overview for “Cinema”, “Traditional TV and home video”, “TV advertising” and “OTT video”.
Cinema
Global box office revenue will exceed $50 billion over the next five years, due to both rising admissions and renewed interest and investment in cinema in countries other than the major regions.
- As the Hollywood majors continue to release mega-budget films, exhibitors are tempting consumers back to theatres. Membership schemes are expected to soften the impact of increased admissions for cinemagoers and to become more popular.
- Netflix and other streaming platforms are increasingly influential and continue to invest in original content, but are still not considered to be direct competitors of the Hollywood majors.
- In terms of total cinema revenue, China will overtake the USA in 2020.
- The number of theaters in the Middle East and Africa is rising faster than in any other region, at a 7.3% CAGR.
Traditional TV and home video
New offerings such as delivery of 4K TV quality are not slowing the decline of the traditional pay-TV industry.
- In the US, TV subscription revenue will fall by -2.9% CAGR to $81.8 billion in 2023. In China, the world’s second-largest market, revenue will grow to $17.9 billion. India will emerge as the fastest-growing subscription TV market in the world and is expected to overtake China in 2024.
- The historically publicly funded strong players broadcasters are increasingly challenged to compete with the growth of Netflix and Amazon.
TV advertising
Thanks to its ability to deliver mass audiences, traditional television advertising continues to dominate the market, but the fastest area of growth in this segment will come from online TV advertising.
- The US is the world’s largest market for TV advertising, but its share of the global market will shrink from 43% in 2018 to 41% in 2023, with emerging markets taking an increasingly larger share. An increase in households with broadband access worldwide is a major factor in the growth of streaming and online video services. China is the largest market with 446 million broadband households.
OTT video
New entrants to the over-the-top (OTT) video market will challenge the dominance of services like Netflix and Amazon.
- The global OTT video market will double in size over the next five years to $72.8 billion. Customers increasingly expect the TV services they want to watch to be available through a single provider, and operators are responding by integrating streaming platforms into their traditional offerings.
- The global market will hit a tipping point in 2021, when Asia Pacific will overtake North America as the world’s biggest region in terms of OTT video revenue.
- Marketers will allocate more than 50% of their budgets to digital advertising by 2023.
