PwC has released its Australian Entertainment and Media Outlook for 2020-2024 showing the impact of changes in consumer habits accelerated by the pandemic, including the evolving appetite of advertisers for more measurable media investment.
- Advertising revenue to grow to $17.9 billion in 2024 at CAGR (compound annual growth rate) of 1.37% a year.
- Consumer revenue to $50.6 billion in 2024, at 3.14% a year.
- Streaming video on demand (SVOD) to grow to $2.3 billion by 2024 at 16.15% a year.
- Digital newspaper consumption continues to grow, with digital subscription revenues to grow to $535 million in 2024 at 11.93% a year.
- Broadcast Video on Demand (BVOD) to reach $501 million in 2024, a 24.87% a year growth rate.
- Free-to-air (FTA) TV ad revenue down by 13.9% to $2.93 billion in 2020. FTA advertising revenue is forecast to decrease 2.48% CAGR to 2024.
- Digitally distributed music including streaming will surge to $1.4 billion in 2024, a 10.31% a year
- Interactive games and esports to grow to $4.4 billion in 2024, a 6.87% a year rise, driven by app-based games and esports, after being the fastest growing segment in last year’s outlook.
Australians are opening their wallets for entertainment and media such as video on demand, podcasting, music streaming and esports, a trend accelerated by the pandemic.
PwC’s Australian Entertainment and Media Outlook 2020-2024 shows Australia’s entertainment and media revenue contracting by 4.46% to $57.4 billion in 2020, although the industry’s fundamental growth trajectory remains positive after the disruption of COVID-19.
The outlook, in its 19th year, indicates advertising revenue will fall 11.31% to $14.9 billion in 2020.
The decline is mainly from pandemic-driven changes to consumption behaviour and the evolving appetite of advertisers for more measurable media investment.
“This result comes amid the sharpest fall in global entertainment and media revenue in the 21-year history of this research, with a global decline of 5.6% from 2019 – more than US$120 billion in absolute terms,” says Justin Papps, PwC Australia partner and entertainment and media outlook editor.
“While the pandemic has had an unprecedented and varying impact, the entertainment and media industry has been going through significant change for years and the pandemic has, in the most part, simply accelerated and amplified ongoing shifts in consumers’ behaviour and in digitalisation.”
PwC forecasts, depending on the route of recovery, that advertising will not exceed 2019 figures until 2022, although some channels will emerge relatively unscathed compared to others.
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