Global Entertainment And Media Outlook 2020-2024

And Media Outlook 2020-2024Global Entertainment

Global Entertainment and Media Outlook 2020-2024PwC Norge 2

Books

Business-to-business

Cinema

Internet access

Internet advertising

Traditional TV and home video

TV advertising

Video games and esports

Virtual reality

Data consumption

$ Consumer/end-user & advertising spending

5 Year historical & 5 Year forecast data 53 Countries 14 Segments

Music, radio and podcast

Newspaper and consumer Magazines

OTT video

Out-of-home advertising


What are the global

trends?

Global Entertainment and Media Outlook 2020-2024PwC Norge


Expected global growth in E&M expenditures of 2.8%

4

Scandinavia1.0 % Russia

5.2 %UK 2.8 %

Western Europe2.1 %

US2.4 %

Brazil 2.5 %

India10.1 %

China3.6 %

Japan1.1 %

Global 2.8 %


Looking across segments, VR continues to top the list, followed by OTTSegment CAGR % 2020 - 2024

TV advertising

Cinema


Newspapers and consumer magazines

Books

B2B

Music, radio and podcast

Out of Home advertising


Video games and Esport

OTT video

VR

Internet access

-5% 0% 5% 10% 15% 20% 25% 30%

4,7%

6,5%

13,4%

24,9%

4,5%

3,3%

2,8%

1,8%

1,4%

0,1%

-1,0%

-2,4%

-4,0%

2020-2024 CAGR %

2.8%Global E&M

Revenue

2020 – 2024 CAGR


OTT, video games & E-sports closes in on internet advertising

Global revenue growth 2020-2024

150 000

100 000

50 000

-50 000

Internet access

OTT video

Video games & E-sports


TV advertisingNewspaper

Tot

al g

row

th in

USD

mill

ions

CAGR 2020 - 2024

200 000

-2% 0% 2% 4% 6% 8% 10% 12%-4% 14% 16% 18% 20% 25%

VR 0

Traditional TV and Home video


What are the Global impacts of Covid-19?

“

Global Entertainment and Media Outlook 2020-2024PwC Norge


COVID-19’s impact on the segments

8

Neutral PositiveNegative

OTT video

Video games and esports

VR

Consumer books

Data consumption

Internet accessTraditional TV and home video

Segments linked to advertising and those dependent on physical locations are likely to be negatively impacted

Newspapers and consumer magazines

TV advertising

Internet advertisingCinema

Out-of-home

Music, radio, podcasts

B2B


As the global economy shrinks for the first time since 2009, the US$2.1tn industry is forecast to contract in 2020 by 5.6%.

20202016 2024201920182017 2021 2022 20232015

3 000 000

2 500 000

500 000

1 000 000

1 500 000

2 000 000

Global E&M Revenue US$mn Annual E&M growth Global GDP growth

2020-2024CAGR2.8%

- 8,00 %

8,00 %

6,00 %

4,00 %

2,00 %

0,00 %

- 2,00 %

- 4,00 %

- 6,00 %

Powering aheadGlobal E&M revenues recover from a 2020 decline and resume their historic growth trend

Glo

bal E

&M

Rev

enue

US

$mn

Grow

th rate (%)


2.2%Global E&MConsumerRevenues

Consumer spending trump's advertising

20242021 2022 2023

2020 – 2024 CAGR

Shifting mixAdvertising spending is projected to be more volatile than consumer spending.

Global E&M consumer revenue growth Global E&M advertising revenue growth

20202016 201920182017

15%

10%

0%

-5%

-10%

-15%

Projected data

Gro

wth

rate

(%)

1.8%Global E&M advertising Revenues


FAANG+ the main reason for stock market rebound during Covid-19

Inconsistency in the market

IT stocks performs good

FAANG+ index driving force

Stock situation

31.12.2019

31.01.2020

29.02.2020

31.03.2020

30.04.2020

31.05.2020

30.06.2020

31.07.2020

31.08.2020

30.09.2020

180

160

140

120

100

80

60

FAANG+ MSCI World Index


How is theoutlook for the

different segments?


How Has the US Average Time Spentwith Media Forecast Changed?2018-2022

12:00

14:00

13:00

13:30

12:30

In order to understand how segments perform, it is crucial to look at where attention is going

Source: eMarketer

0:39 Other

1:35 Radio

Total hours per day: 13 hours 35 minute

7:32 Digital

3:49 TV

1:14 Other2:00 Desktop/laptop

4:35 Mobile (nonvoice)

Digital split

November 2019 forecast

April 2020 forecast

2018 2019 2020 2021 2022

12:2512:30

13:35

12:30

13:2313:15

12:32


Looking across segments, OTT video top the list, followed by Video games and EsportsScandinavian segment CAGR % 2020 - 2024

-6% -4% -2% 0% 2% 4% 6% 8% 10%

4,6%

4,8%

7,8%

10%

1,1%

0,1%

0,1%

-0,1%

-0,4%

-0,8%

-0,4%

-4,2%

OTT video

Video games and Esports

Internet access

Out-of-home advertising

Business-to-business

Cinema


Consumer books

Music, radio and podcasts

Newspaper and consumer magazine


12%

2020-2020 CAGR %

TV advertising

2020-2024CAGR

Scandinavian E&M

Revenues1.0%


Consumerentertainment


OTT video will drive the growth in the Scandinavian filmed entertainment market

16

2020 – 2024 CAGR

2.1 %

Cinema 0,1%

OTT video 10%

Traditional TV and home video -0.4%

Scandinavian filmed entertainment revenue in US$mn

529 547542 558 584 260

393542

564588

514 659 821 940 1058 1223 1304 1414 1573 1701

3685 3677 3688 3672 3671 3552 3593 3585 3593 3601

20162015 20182017 20202019 20222021 20242023


Consumer habits can take a lifetime to learn—but just a lockdown to lose

Surging demand for on-demand (global numbers)Subscription video on demand revenues double box office revenues by 2024.

20202016 2024201920182017 2021 2022 2023

80

40

20

0

Glo

bal r

even

ues

(US

$bn)

Projected data

2016

60

Subscription video on demand revenues Box office revenues

Global Entertainment and Media Outlook 2020-2024PwC Norge 18 18

Live Music

Recorded music

2020 – 2024 CAGR

1.4%

2.0%

1.6%

Despite a disruption from the outbreak of COVID-19 the Scandinavian music and radio revenue remains fairly stable

Total music revenue in Scandinavia in us$mn

2015 201720160

Sca

ndin

avia

n re

venu

es (U

S$m

n)

200

400

600

800

1 000

1 200

1 400

Projected data

2018 20212019 2020 2022 2023 2024


Podcasts remain resilient during COVID-19, with growth in monthly listeners and steady advertising revenueGlobal podcast advertising revenue (US$mn) and monthly listeners (mn), 2015-2024

Pod

cast

adv

ertis

ing

reve

nue

(US

$mn)

500

2015

1000

1500

2000

2500

3000

3500

4000

2016

Podcast advertising revenue

Podcast monthly listeners

2017 2018 2019 2020 2021 2022 2023 2024

400

600

800

1,000

1,200

1,400

1,600

1,800

Pod

cast

mon

thly

list

ener

s (m

n)

200

Podcast revenue22.2%

2020 – 2024 CAGR

18.8% Monthly podcast listeners


Scandinavian video game industry expected to grow by 7.8%

Scandinavian Video game revenue in 2015-2024 in US$mn

App based games

Console Games

14.2%

5.9%7.8%

7.5%

2020 – 2024 CAGR

PC Games200

2015

400

600

800

1000

1200

1400

1600

1800

2000

2016 2017 2018 2019 2020 2021 2022 2023 2024


Media &advertising


Declining revenue for Scandinavian newspaper segment

Total newspaper revenue in Scandinavia in us$mn

Rev

enue

in U

S$

mn

500

2015

1000

1500

2000

2500

3000

3500

4000

4500

5000

2016 2017 2018 2019 2020 2021 2022 2023 2024

Digital newspaper circulation

Digital newspaper advertising

2020 – 2024 CAGR

13.2%

3.1%

-4.2%

Print newspaper advertising

-11%

Print newspaper circulation

-7.5%


Digital advertising

Non-digital advertising

2020 – 2024 CAGR

0.6%

-3.6%

20152000

Sca

ndin

avia

n re

venu

es (U

S$m

n)

2500

Scandinavian advertising spending remains sluggish

Virtual progressAn increasing share of advertising spending is devoted to digital

3000

3500

4000

4500

5000

2016 2017 2018 2019 2020 2021 2022 2023 2024

Projected data

-1.2%

Scandinavian digital advertising revenues

Scandinavian non-digital advertising revenues


4 680US$mn

24

Internet advertising is maturing, mobile is taking market sharesScandinavia internet advertising by sub segment

Pre Covid-19 forecast

After Covid-19 forecast

2019 – 2024 CAGR

2.4%

0.1%

4 660US$mn

Classified Internet advertising

Display Internet advertising

Paid search Internet advertising

Mobile Internet advertising33%

12%

22%

29%

41%

16%

17%

25%

2019 2024F

Reconfigurationis under way


Technology and infrastructure will pave the way for growth

5G vision for the future of media experiences

By 2025, 45% of the world will be covered by 5G. Connecting more than 1.7bn devices

AI in the home

In 2024, there will be 543mn smart speakers owned in the 20 countries covered in the outlook

forecast

Pandemic boosts virtualisation

Advances in infrastructure—including 5G rollouts—may also combine with the effects of

COVID-19 to help AR and VR start to realise their long-heralded potential in E&M.


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www.pwc.no/outlook

© 2020 PwC. All rights reserved. Not for further distribution without the permission of PwC. “PwC” refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm’s professional judgment or bind another member firm or PwCIL in any way.

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Global Entertainment And Media Outlook 2020-2024

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