In its latest edition of the Global Entertainment and Media Outlook report, PricewaterhouseCoopers states the industry has regained the momentum lost during the pandemic and is on track to grow 6.5 per cent in 2021 and 6.7 per cent in 2022.
Globally the industry’s revenues saw a drop from $2.1 trillion in 2019 to $2.0 trillion in 2020, which PwC said was the biggest drop in the report’s 22 year history.
However, there are some bright spots:
- From 2021 to 2025, PwC projects global E&M revenue to grow at a healthy compound annual growth rate (CAGR) of 5.0% per cent, taking industry revenues to $2.6 trillion in 2025.
- Video streaming boomed in 2020 and its growth trajectory will continue. Streaming video-on-demand (SVoD) is projected to grow at a CAGR of 10.6 per cent to 2025, making it a $81.3 billion industry. Meanwhile, cinema revenues are projected to rebound in 2021 as lockdowns ease but will not recover to pre-pandemic levels until at least 2024.
- Virtual reality is the fastest-growing E&M segment, albeit from a small base. Its revenues surged by 31.7 per cent in 2020 to $1.8 billion and are projected to sustain a CAGR of 30 per cent over the next five years to reach $6.9 billion business in 2025.
The report goes on to say that the streaming side of the industry may be about to enter a new phase of growth—one that is more measured, more focused on improving the experience of customers, and more intent on retaining and creating value from the immense subscriber bases that have materialised.
“At the heart of it lies an arms race for content,” said the report. “A common strategy for achieving both goals—a better experience and higher retention—is commissioning large amounts of material that is recorded and viewed at customers’ convenience. This content is increasingly being produced locally and in local languages by both global and domestic players. Amazon and Netflix are estimated to have spent $6 billion and $15 billion, respectively, on new content in 2019.”
The report is available to download here.