Looking at the global Entertainment and Media industry, watchdog PricewaterhouseCoopers sees a $1.6T industry by the year 2013. But it doesn’t think the worm will start turning until 2011, and traditional media may not be going along for the ride. It’s looking for a 3.9% drop this year, a modest 3.2% gain by 2011, and a more robust 7.1 in 2013. Results, of course, will vary greatly for each medium and region.
Throughout this period, PWC is sure that the digital migration will continue strongly. The key, from a consumer standpoint, is the ability to manage individual media consumption from moment to moment.
Digital technology allows consumers the to timeshift video programming delivered over traditional media, not to mention zap commercials. New platforms such as Kindle are providing new ways to get written information (which the internet handles well anyway), music platforms on the internet abound and provide an easy way to sell recordings with no manufacturing or distribution steps, and ubiquitous internet access will allow internet music playing services access to a worldwide audience.
It will take creativity and commitment for traditional media to stay in the game going forward. Marcel Fenez, PWC’s Global Leader Entertainment & Media practice, said: “In some ways this could be called ‘the perfect storm.’ Inside every cloud is a silver lining and in this case, a digital one. Companies who grasp the opportunities which are appearing in this fast changing marketplace and are agile enough to adapt their business models will be able to take full advantage of the potential and new revenue models as they emerge.”
RBR/TVBR observation: It is still difficult for internet services to do local, so it remains critical for broadcasters to defend local turf fiercely. And local broadcast-related websites can be a big part of the battle. If the station is a brand within the market, loyal members of the audience will go to the website. Your mission will be to make sure there are plenty of elements to keep them engaged there when they do visit, with plenty of opportunities built in to monetize the operation.
