January 25, 2023
PwC Predicts Slow Global Media Growth, But Strong Digital Push
- by Wayne Friedman , June 16, 2009
According to PricewaterhouseCoopers' annual "Global Entertainment and Media Outlook 2009-2013," U.S. consumer spending on media and entertainment will grow at a 1.2% compound annual growth rate to $495 million by 2013, while entertainment/media segment advertising will decline by 1.7% to reach $174 billion in 2013. That's down from $189 billion in 2008.
The somewhat bad news is that U.S. gains will underperform the worldwide consumer entertainment spending trends, where global entertainment and media spending will rise 2.7% to $1.6 trillion in 2013, mostly driven by digital platforms.
The study says the economic downturn is forcing content owners to accelerate digital businesses to gain greater efficiency.
In the U.S, for example, Internet advertising spending will rise to a 19% share of all U.S. advertising in 2013, compared to 13% in 2008 and only 5% in 2004. Digital consumer spending will rise to 25% of total industry revenues in 2013 from 17% in 2008.
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By 2013, global digital platforms -- Internet, mobile, and cable television -- will account for 78% of total consumer/end-user growth, rising 12.2% (CAGR) reaching $387 billion from $218 billion in 2008. In the U.S., digital and mobile platforms will account for 51% of consumer growth, rising 11.5% (CAGR) to $82 billion in 2013 from $48 billion in 2008.
Other fast-moving entertainment growth businesses will be video games, rising 5.8% (CAGR) over the next five years and TV subscriptions, climbing 5.5%. Filmed entertainment will move at a somewhat slower pace -- 3.3%. Out-of-home advertising will rise 3.3%.
Entertainment/media businesses going south will be TV advertising, down 0.6%; consumer magazine publishing, off 1.7%; radio, 2.2% lower; business-to-business publishing, down 3.3%; recorded music, slipping 4.7%; and newspaper publishing, falling 5.9%.
