Total spending in 2011 was $1.6T, according to PwC – and by 2016 its going to soar to $2.1T, with a compound annual growth rate of 5.7%.
PwC said, “Record global sales of tablets and smart devices are underlining the rising revenue opportunities from digital delivery of entertainment and media content and advertising to increasingly connected and mobile consumers. According to PwC’s annual Global Entertainment and Media Outlook 2012-2016 – an in-depth five-year outlook for global consumer spending and advertising revenues directly related to entertainment and media content – released today, the industry is approaching the ‘end of the digital beginning’ with digital now embedded in business-as-usual and moving to the heart of many E&M companies.”
US spending in the category is expected to jump from $464B in 2011 to $597B in 2016, a 5.2% CAGR.
Globally, 67% of the growth in the category is expected to come on the digital side.
And in the US, by 2016, digital is expected to have a 31.5% share of the E&M pie, up from 21.7% in 2011.
“Change in consumer behavior is pervasive and accelerating and the E&M industry is in the front line of this change,” said Ken Sharkey, entertainment, media & communications US practice leader, PwC. “The past uncertainty triggered by the digital migration has given way to a sharper focus of E&M companies on executing their digital strategies. While experimentation will continue, the way forward is becoming clearer as companies focus on identifying, choosing and executing the right business models, organizational structures and developing the skill sets to understand consumer behaviors and motivations in their connected, multi-screen environments.”
“By embracing digital as the engine of their business and using it to integrate and automate processes from content production to rights management, E&M companies are well positioned to meet the fast changing consumer demands through any channel and format more effectively and drive greater revenue growth than before,” added Sharkey.
RBR-TVBR observation: Bad news/good news: The bad news should not be any kind of surprise – yeah, yeah, most of the growth is coming on the digital side.
The good news is that there is not one single thing preventing broadcasters from using their traditional media foundation as a springboard into full-fledged participation in the digital side, to partake of a heaping helping of the digital bounty that is headed our way.