PwC's 14th annual Global Entertainment and Media Outlook shows that while
traditional media will continue to hold the lion's share of spending,
digital and online services are making a big splash in the developed
TORONTO, June 5, 2013 /CNW/ - According to PwC's annual Global Entertainment and Media Outlook 2013-2017 released today, spending on traditional media will continue to dominate
over the next five years-- the 9% of overall consumer E&M spend on
digital content in 2012 will rise to just 16% of total spend in 2017.
However, digital innovation is crucial for E&M companies in North
America, the South Pacific and Western Europe and will be a key
priority for these markets over the next five years.
Specifically, in Canada:
Canadian online advertising revenue reached US$3.2 billion in 2012, up
from US$2.8 billion in 2011. By 2017, the market will be worth US$6.4
billion, a CAGR of 14.5% over the forecast period. Canada is a
developed Internet market, with a high household broadband penetration
rate of 67% and a highly Web-literate population. According to
comScore, Canadians are some of the most active users of the Internet,
in terms of the number of pages viewed and the time spent online, in
the world, and online advertising has benefited accordingly.
Mobile advertising is a small piece of the puzzle, but is growing at a
rapid pace. Revenue is forecast to increase from US$113 million in 2012
to US$311 million in 2017, a CAGR of 22.4%. Smartphone penetration in
Canada is high, and is driving growth in the market.
The future of digital radio in Canada will be carried primarily by
subscription satellite digital services from Sirius XM Canada.
Satellite radio subscription revenues will grow rapidly ̶ at a CAGR of
8.3% through to 2017, when they will reach US$387 million, representing
17% of all Canadian radio revenue.
Although emerging markets such as those in Asia, Africa, and the Middle
East will see the most total E&M growth, mature markets unsurprisingly
will continue to be instrumental in driving the global shift towards
digital consumption of E&M services. Encouraged by widespread
ownership of smart devices, digital will constitute 44% of all spending
in the mature markets by 2017, which is almost double the level in 2008
and up from 34% in 2012.
Business spending is likely a result of changing consumer preferences.
Consumer are shifting their purchasing away from physical purchases,
such as boxed video games, DVDs and music CDs-- in 2008 physical items
constituted 88% of total consumer spending, which has dropped to 73%
today and which will continue falling as consumers become more
accustomed to purchasing digital media and become more digitally
advanced. By 2017, physical purchases will represent just 53% of spend.
Additional key statistics from PwC's Global Entertainment and Media Outlook 2013-2017 include:
Within the E&M sector as a whole, Internet advertising will be the
fastest-growing segment, with an expected 13.1% CCAGR during the
forecast period. The segment is currently worth US$100.2 billion and
set to reach US$185.4 billion by 2017. A large aspect of this is
mobile, with growth forecast across all regions over the next five
years. A 27% CAGR will ensure mobile advertising revenues will be in
excess of US$27 billion in 2017, comprising 15% of Internet advertising
revenues. Video games at a 6.5% CAGR and TV advertising at a 5.3% CAGR
are also showing strong growth.
The annual value of North America's electronic home video market—both
pay-TV and over-the-top streaming services—will surpass box office for
the first time in 2017. North America's electronic home video market
will be US$14.78 billion in 2017 compared to box office's US$13.5
Looking solely at consumer spending on E&M, China will rise from fifth
in 2012 to third in 2017, surpassing the UK in 2013 and Germany in
2016. Brazil will also grow, surpassing Canada in 2014 and South Korea
and Italy in 2016 to reach number seven. India will pass Australia in
2014 but remain just outside the top 10 consumer spending markets.
Brazil will overtake UK, Canada and India in 2013 to become the third
largest market for TV subscriptions (excluding license fees). Brazil is
one of the fastest growing markets for consumer spending within the
subscription segment at 13% CAGR.
Upon request, the media contacts listed below can also provide:
Canadian-specific data points and commentary on each area of spend
Access to an interactive website where media can pull country
comparisons and 5 year historical data, as well as filter results by
industry and segment
About the Global Entertainment and Media Outlook 2013-2017
PwC's 14th annual update of the Global Entertainment and Media Outlook 2013-2017, is a comprehensive online source of global analysis for consumer and
advertising spend. With like-for-like, five-year historical and
forecast data across 13 industry segments in 50 countries, the Outlook makes it easy to compare and contrast regional growth rates and
consumer and advertising spend. And new this year, it also contains
individual country commentary for all segments. Find out more at www.pwc.com/ca/emoutlook
Follow PwC on Twitter at @PwC_Canada_LLP and on Facebook at www.facebook.com/pwccanada. You can also follow the June 6 launch of the Entertainment and Media
Outlook at #EMOutlook.
About PwC Canada
PwC Canada helps organizations and individuals create the value they're
looking for. More than 5,700 partners and staff in offices across the
country are committed to delivering quality in assurance, tax,
consulting and deals services. PwC Canada is a member of the PwC
network of firms with more than 180,000 people in 158 countries. Find
out more by visiting us at www.pwc.com/ca.
© 2013 PricewaterhouseCoopers LLP, an Ontario limited liability
partnership. All rights reserved.
PwC refers to the Canadian member firm, and may sometimes refer to the
PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
SOURCE: PwC (PricewaterhouseCoopers)
For further information:
T: +1 416 814 5734
T: +1 416 947 8983