Report: Entertainment and media companies must look to consumer value to drive growth

PwC’s 18th annual Australian Entertainment & Media Outlook analyses trends and consumer and advertising spend

A new report is urging entertainment and media companies to reinvent traditional platforms, and be fundamentally driven by what value they can offer consumers in order to achieve growth in the coming five years.

According to the latest PwC Australia report, Australian media companies must develop innovative strategies to increase their share of consumer attention and spend.

The consulting group's 18th annual Australian Entertainment & Media Outlook analyses trends and consumer and advertising spend across 12 segments and shows spending is expected to rise at a compound annual growth rate (CAGR) of 4.2 per cent over the next five years, up from three per cent in 2018, with players increasingly breaking away from legacy models.

Advertising spending is set to reach $23 billion by 2023, at a steady compound annual growth rate of 7.8 per cent. Internet advertising and subscription TV continue to capture an increasing share of ad spend from free-to-air (FTA) television, newspapers and consumer magazines in particular. The interactive games market is set to be the fastest growing segment in consumer spending, forecast to rise at a CAGR of 15.6 per cent to $7.1 billion, up from 8.5 per cent in 2018. 

PwC Australia partner and Entertainment and Media Outlook editor, Justin Papps, said across the 12 segments forecast in the Outlook all players have an urgent focus on implementing the organisational transformation necessary to deliver growth.

 “In Australia, we’re actually seeing a move beyond some of the tired dichotomies that have dominated industry discussion about disruption so far. The Global Outlook results drive home the importance of legacy reinvention away from models defined by platform, and with greater emphasis on the fundamental value the organisation can deliver to consumers,” Papps said.

“Fragmentation of audiences is driving a ‘race for reach’, with consumers spending more of their time across multiple platforms, events, and devices. Plus, consolidation is driven by media owners’ sprinting to meet marketers’ demands by acquiring mass-reaching assets.”

These findings are supported by a recent Zenith report, which found consumers will spend 800 hours using mobile internet devices this year.

The Zenith Media Consumption Forecasts report also found by 2021 the total will rise to 930 hours, or 39 full days.

Across the 57 countries surveyed, people will spend a collective 3.8 trillion hours using the mobile Internet this year, rising to 4.5 trillion hours in 2021. Since 2015, the average amount of time people around the world spend accessing the mobile internet has risen from 80 to 130 minutes a day, at an average rate of 13 per cent a year, spurred on by the availability of affordable smartphones, faster connections, better screens and app innovation.

Television remains the biggest medium globally, attracting 167 minutes of viewing each day in 2019. Television viewing is predicted to fall slowly to 165 minutes a day in 2021. Television will remain the world’s favourite medium, accounting for 33 per cent of all media consumption in 2021, down from 35 per cent in 2019.

Between 2014 and 2019, the average amount of time spent reading newspapers has fallen from 17 minutes a day to 11, while time spent reading magazines has fallen from 8 to 4, and time spent watching television has fallen from 171 to 167.

“To combat these forces, entertainment and media organisations are increasingly breaking away from legacy models defined by platform. In radio, for example, new opportunities for growth in podcasts are being further developed. Free-to-air television is likewise seeing increasing returns from video-on-demand platforms, where programming is moving beyond catch-up and into back-catalogue viewing,” Papps said.

“Entertainment and media organisations that make the critical link between growth in their share of the marginal minute of consumer attention and their revenue growth will be the ones to succeed in the search for growth.”

Advertising revenue in advertising supported video-on-demand and, in particular, broadcaster video-on-demand (BVOD) is expected to grow strongly over the next five years.  This will be driven by greater penetration of smart televisions with OTT television capability embedded, as well as other internet enabled hardware devices.

“Three strategic takeouts for growth driven by audio in the world of ‘me media’ are: compete on content, know your audience and align curation to mood or genre.  In contrast, video streaming businesses should focus on finding their niche, building a strong content pipeline, quality control and balancing acquired and commissioned content,” Papps said.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu  

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Nice!https://www.live-radio-onli...

OmiljeniRadio RadioStanice Uzi

Google+ and Blogger cozy up with new comment system

Read more

Awesome and well written article. The examples and elements are good and valuable for all brand identity designs. Speaking of awesome, ch...

Ryota Miyagi

Why customer trust is more vital to brand survival than it's ever been

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in