Despite the global economic difficulties, rapid technological evolution and the swarming of competitors, the E&M market continues to grow and will double its 2020 value in 2028. See how in our look at Pwc’s Global Entertainment & Media Outlook 2024-2028
$3.4 trillion by 2028 and advertising revenues of $1 trillion within the next two years. Meanwhile, by 2023, the global Entertainment & Media market grows by 5%, creates a value of $2.8 trillion and exceeds the economic growth estimated by the International Monetary Fund. According to the PwC Outlook, which covers 13 industries in 53 countries, the compound annual growth rate (CAGR) of 3.9 per cent will be accompanied by a substantial increase in advertising revenue, accounting for more than half of the industry’s growth over the next five years.
Geographically, the report says the US remains firmly in first place in terms of consumer spending and advertising revenue (4.3% CAGR to 2028). In 2023, the US accounted for over a third of global E&M market spending. However, China (7.1 per cent), India (8.3 per cent) and less mature markets such as Indonesia (8.5 per cent) and Nigeria (10.1 per cent) show more attractive growth rates to 2028.
Streaming, live and digital challenges
On the ‘product’ front, we start with the evolution of streaming services, traditionally dependent on subscription-based models, which will have to adapt to competition and changing consumer habits. To continue to grow, players will focus on live sporting events, restrictions on password sharing between subscribers and new advertising formats. But let’s not forget ‘real-life experiences’ such as concerts and cinemas. In fact, cinema and live music ticket sales account for 38.6 per cent of the net increase in consumer spending in 2023. Driven by big world tours (see the current Taylor Swift – mania), live music sales are up 26% and cover more than half of the music market. Cinema, in fact, is also doing well, with box office up 30.4% year-on-year and revenues set to exceed pre-pandemic levels by 2026.
Special mention also for gaming with eSports, i.e. competitive matches with professional tournaments and live spectators. This is a rapidly growing market, with a turnover of USD 227.6 billion in 2023 (+4.6% over 2022). Earnings, set to exceed $300 billion in 2027, will be practically double that of 2019.
“In Entertainment & Media, physical experiences continue to be extremely popular: print books, out of home advertising, music concerts, major events, cinema and sports are segments experiencing consolidation and growth,” reports Filippo Schemoz, PwC Italia partner, entertainment & media advisory. “The challenge for operators lies in integrating physical experiences with the business potential of digital, in order to renew their operating models and achieve greater efficiency”.
