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Global Entertainment & Media Outlook: 2020-2024
October 2020
PwC | Global Entertainment & Media Outlook
1. Perspectives from the 2020 Outlook 03
2. Overview – Global E&M macro trends 07
3. Segment review – Spotlight on India 13
4. Q&A 37
Contents
2
Perspectives from the 2020 Entertainment & Media outlook
Pulling the future forward: The entertainment and media industry reconfigures amid recovery
PwC | Global Entertainment & Media Outlook
Pulling the future forward: The entertainment and media industry reconfigures amid recovery
4
• Consumer habits can take a lifetime to learn—but just a lockdown to lose.
In only a few short months, COVID-19 accelerated ongoing changes in
consumers’ behaviour, pulling forward a series of digital disruptions that would
have occurred in future years
• New opportunities for new business models present themselves to meet
consumers who are predominantly at home and online – businesses are creating
new arrangements and combinations aimed at opening up new revenue
opportunities
• Consumer spending to grow faster than advertising – E&M companies are
increasingly in the business of delivering experiences and content directly to
consumers, not delivering audiences and eyeballs to advertisers
• Reconfiguration is underway as consumers and businesses adapt. Although
there will still be challenges for E&M companies as we move beyond the
pandemic, the digital migration that has been pulled forward will also generate
opportunities in most segments
Global Entertainment & Media Outlook perspectives
2020 Outlook perspectives
PwC | Global Entertainment & Media Outlook
Shifting patterns of consumer behavior…
5
The pandemic has propelled consumers even faster towards digital behaviours in many areas of their lives
2020 Outlook perspectives
From To
Attending live music events (e.g.,
concerts, festivals)
Viewing movies in the cinema
Attending fitness classes at studios
• Live performances streamed online
• Viewing concerts on gaming platform event
• Viewing films on over-the-top (OTT) platforms
(e.g., Netflix, Disney Hotstar)
• On-demand online fitness classes
• Live-streamed fitness classes
Attending B2B trade shows• Virtual events, online digital tours and
multimedia
PwC | Global Entertainment & Media Outlook
… had led to E&M companies adopting new ways to drive growth and match consumer preferences
6
2020 Outlook perspectives
Companies shift from
advertisers to
subscriptions
• Drive towards subscriptions reflects a wider attribute of the accelerated digital future:
the power of direct-to consumer connections
Digital event spaces
present new opportunities
• Companies are exploring different ways to bring live experiences into the home in a
more personalized and engaging way. Eg. Virtual events, online digital tour and esports
Pandemic boosts
virtualization
• Connected studios: From production to sound and graphics have an opportunity to
leverage cloud infrastructure enabling virtual production capabilities.
• Advances in tech such as 5G roll-outs combined with the aftereffects of COVID-19 may
help immersive tech like AR/VR to realize their true potential
Marketers are redirecting
spend to Digital
• Media budgets are shifting to Digital channels in tandem with the spike in media
consumption since lockdown. Cross-platform strategies (OTT + CTV) are becoming
critical to improve monetization and advertiser ROI.
• Though still nascent, many brands and businesses are looking to utilize Podcasts as a
channel to deliver vs their normal advertising channel of choice such as OOH
Overview – Global Entertainment & Media macro trends
Global summary and macro trends
PwC | Global Entertainment & Media Outlook
Total E&M revenue is set to fall more than US$120bn on 2019
8
Global summary and macro trends
Global total E&M revenue vs annual growth, 2015-2024
…In 2009, the last year the global economy shrank, total global E&M revenue fell by just 3.0%
Note: All figures are reported in nominal terms reflecting actual spending transactions and therefore include the effects of inflation
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook, World Bank, IMF
1.71.8
1.92.0
2.12.0
2.22.3
2.42.5
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
0
0.5
1
1.5
2
2.5
3
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Yo
Y g
row
th (
%)
To
tal E
&M
re
ve
nu
e (
US
$tr
)
Global E&M revenue (Est.) Annual E&M growth Global GDP growth
-5.6% drop in
E&M revenue
6.4% jump in
E&M revenue
PwC | Global Entertainment & Media Outlook
However, Digital will see its share of total E&M revenue jump in 2020
9
Global summary and macro trends
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: 2019 is the latest available data. 2020-2024 values are forecast projections
600
700
800
900
1,000
1,100
1,200
1,300
1,400
1,500
1,600
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Revenue (
US
$bn)
Digital Non-digital
Global total E&M revenue, digital vs. non-digital, 2015-2024 (US$bn)
• Digital revenue to touch 60%
share of total E&M revenue by
2020. Pre-COVID forecast was
58.5%
• Non-digital revenue segments
heavily impacted: cinema, sales
of print newspaper and
magazines
• Digital revenue segments that
have benefited: OTT, video
games, internet advertising
Digital revenue accelerates5.4%
2019-24
CAGR
-1.0%
Non-digital entertainment
choices have been heavily
affected by COVID-19
PwC | Global Entertainment & Media Outlook
In terms of individual segment market size as % of global E&M revenue, OTT video will see the largest gain
10
Global summary and macro trends
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: 2019 is the latest available data. 2020-2024 values are forecast projections | Above table excludes figures for Internet access.
Share of E&M revenue by segment: 2019 vs. 2024
– Fast trackers: OTT, Internet
Advertising, Video games and
esports, music, radio and
podcasts
– Slow trackers: Cinema,
Newspapers and consumer
magazines, Traditional TV and
advertising
COVID impact on market size
Segment 2019 actual
- Global
2024
forecast
2019 actual
- India
2024
forecast
Internet Advertising 14.5% 15.9% 4.1% 6.8%
TV and Home Video 11.3% 9.4% 33% 29.2%
B2B 8.5% 8.0% 3.9% 3.2%
Video games and esports 6.1% 7.3% 3.9% 5.7%
TV Advertising 7.2% 6.1% 9.4% 6.4%
Newspapers and consumer
magazines7.4% 4.9% 11.8% 7%
Music, radio and podcasts 4.3% 4.2% 2.7% 3.1%
OTT video 2.2% 3.5% 2.4% 5.2%
Books 2.8% 2.6% 2.7% 2.6%
OOH 1.8% 1.8% 1.4% 1.2%
Cinema 2.1% 1.6% 5.1% 2.8%
VR 0.1% 0.2% - -
PwC | Global Entertainment & Media Outlook
Looking at growth across segments, OTT continues to top the list, followed by Internet advertising
11
Global summary and macro trends
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: Data consumption is not included
-4.0%
-2.4%
-1.0%
0.1%
1.4%
1.8%
2.8%
3.3%
4.7%
6.5%
13.4%
24.9%
-0.7%
-2.6%
7.4%
2.1%
9.0%
6.0%
13.5%
7.6%
21.7%
18.8%
28.5%
-10% -5% 0% 5% 10% 15% 20% 25% 30% 35%
Newspapers and consumer magazines
Cinema
Traditional TV and home video
TV advertising
Books
B2B
Music, radio and podcasts
OOH
Internet advertising
Video games and esports
OTT video
VR
2019-2024 CAGR %
India
Global
Segment CAGR % 2019 - 2024
Cinema and Newspapers are
showing negative growth for
the first time in India
PwC | Global Entertainment & Media Outlook
India leads as the fastest-growing consumer market when looking at pure consumer E&M revenue*
12
Global summary and macro trends
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: 2019 is the latest available data. 2020-2024 values are forecast projections | * Includes only subscription revenue
Five fastest-growth consumer markets, CAGR 2019-2024 (%)
8.8% 8.6%
5.8%5.4% 5.4%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
India Nigeria Philippines Saudi Arabia Pakistan
• Overall E&M total revenue by
territories has Egypt leading the
way with a 17.3% CAGR and
total revenue set to double in
2024
• However, looking at pure
consumer revenue has India
leading the pack with a 8.8%
CAGR through 2019-2024
• Overall global consumer
revenue is forecasted to rise
2.2% in the forecasted period
E&M consumer revenue leaders
PwC | Global Entertainment & Media Outlook
Industry Global Mega trends
13
Global summary and macro trends
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Mobile display will overtake wired Internet advertising in 2022. Led by mobile video consumption and social media.
Games category is set to become the third-largest consumer of data by 2024
Digital advertising revenue surpassed traditional advertising in 2019
Globally, Digital consumer magazine advertising will overtake print magazine by 2023.
Asia Pacific overtakes North America as the leader in smart speaker ownership in 2019
COVID-19 has accelerated OTT platform adoption. Global SVOD revenue will overtake box office spend in 2020.
In 2019, data consumed by smartphones overtook fixed broadband ; to accelerate as 5G becomes more accessible1
2
3
4
5
6
7
Segment review –Spotlight on India
PwC | Global Entertainment & Media Outlook
Expect a K-shaped bifurcated recovery, in which some sectors rise while others fall
15
India spotlight - Summary
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: Data consumption is not included Size proportional to segment revenue in 2019
• Segments linked to advertising and
those where consumption happens in
physical spaces are likely to be
negatively impacted
• Digital E&M spending — OTT subscription
or mobile data allowance is being
increasingly regarded as a utility and
therefore a non-discretionary expense
• Top 4 segments in terms of % CAGR
growth (2019-24)
1. OTT Video
2. Internet Advertising
3. Video games and esports
4. Music, radio and podcasts
• The industry’s longer-term outlook
remains robust, growing at a CAGR of
10.1% to reach US$55 Bn by 2024
• Changing consumer behaviors will clearly
impact Cinema and Print segment.
Digital businesses to gain
OTT video
Internet advertising
Video games and esports
Music, radio and podcasts
Consumer books
Out-of-home advertising
Traditional TV and home video
B2BTV advertising
Newspaper and consumer magazine
Cinema -50
-30
-10
10
30
50
70
-10 -5 0 5 10 15 20 25 30
Sh
ort
te
rm r
eco
ve
ry : %
gro
wth
in
20
21
v/s
20
19
Long term view : 5yr % CAGR 2019-2024
PwC | Global Entertainment & Media Outlook
India is the fastest growing OTT market at 28.6 % CAGR ; to become the sixth-largest market in 2024
16
Deep dive: OTT video
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
OTT video segment revenue 2019-2024 (US$ Bn)
46.3
58.4
86.8
2019 2020E 2024E
0.8
1.1
2.9
2019 2020E 2024E
84% 86% 93%
16% 14% 7%
2019 2020E 2024E
Subscription VOD Transactional VOD
Subscription VOD vs transaction VOD
(% share of overall OTT market)
82% 85% 87%
18% 15% 13%
2019 2020E 2024E
IndiaGlobalIndiaGlobal
• India’s OTT market to overtake South Korea, Germany and
Australia and become the sixth-largest market in 2024.
• OTT video growth is coming from both inside and outside the
home as Internet-connected devices proliferate, notably new
smartphones and connected TVs.
• Subscription VOD will be the prime driver of revenue, increasing at a
30.7% CAGR from US$708mn in 2019 to US$2.7bn in 2024
• The new at-home environment has led to the rise of new direct-to-
consumer apps, local ‘bite-sized’ entertainment platforms and user-
generated content (UGC) formats.
PwC | Global Entertainment & Media Outlook
OTT to gain as cinema degrows; SVOD revenue to overtake box office spend in 2020
17
Deep dive: OTT video
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: 2019 is the latest available data. 2020-2024 values are forecast projections
0
10
20
30
40
50
60
70
80
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Reve
nu
e (
US
$b
n)
Subscription VOD revenue Box office revenue
Global SVOD vs box office revenue, 2015-2024 (US$bn)
14.5%
-2.4%
2019-24 CAGR
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Re
ve
nu
e (
US
$b
n)
Subscription VOD revenue Box office revenue
India SVOD vs box office revenue, 2015-2024 (US$bn)
30.7%
-2.6%
2019-24 CAGR
• COVID-19 has accelerated OTT platform adoption
• A key tipping point will be reached in 2020 when SVOD revenue will overtake box office spend. This event highlights the
speed at which OTT platforms have been accepted by consumers.
• OTT to benefit from the degrowth of cinemas, as some film studios choose to fast-track new releases to home video platforms.
SVOD
slides past
box office
In 2018, SVOD revenue
was approx. a third of total
box office revenue
PwC | Global Entertainment & Media Outlook
While COVID impacted overall advertiser confidence, Internet advertising segment emerged comparatively unscathed
18
Deep dive: Advertising
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: 2019 is the latest available data. 2020-2024 values are forecast projections
India advertising market, 2019-2024 (US$mn)
• India is now the sixth-largest Internet
ad market in the Asia Pacific, having
surpassed Taiwan in 2019.
• Mobile will continue to be the
primary driver of revenue due to
increased data affordability, new
mobile-first formats, ability to
measure, and strategic targeting (i.e.
geolocation).
• TV advertising model continues to
be impacted by the ongoing shift in
the consumers’ media consumption
habits
• Traditional media such as
newspapers are investing heavily in
their own digital services and looking
to monetize through a hybrid of
subscriptions and ad based models.
Internet adv - US$3.8bn by 2024
0
2,000
4,000
6,000
8,000
10,000
12,000
2019 2020 2021 2022 2023 2024
Re
ve
nu
e (
US
$m
n)
Newspaper and consumer magazine OOH TV Internet Music and podcasts Radio
21.7%
2019-24
CAGR
2.1%
-1.5%
7.6%
20%
9.8%
PwC | Global Entertainment & Media Outlook
India’s billion-dollar gaming market to reach US$3.2bn in 2024, increasing at an impressive 18.8% CAGR
19
Deep dive: video games and esports
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: 2019 is the latest available data. 2020-2024 values are forecast projections
• Gaming and esports is capitalizing on the need
to bring live experiences into the home in more
personalized and engaging ways. Players are
increasingly experimenting with cloud, virtual
reality (VR) and mixed reality (MR)
• Esports represents less than 1.0% of overall
market in 2019, but will be the faster growing
segment with a projected 33% CAGR to 2024
• As per category, social/casual games to become
even more dominant over the forecast period,
accounting for 86.7% of the market in 2024.
• Despite surging growth and enormous potential,
the challenge that remains is of relatively low
levels of app monetization.
Gaming content sees rapid growth
0.0
0.5
1.0
1.5
2.0
2.5
3.0
US
$ B
n
Social/ Casual
Traditional
Consumer spend by gaming category (US$ Bn)
Video games and Esports segment revenue 2019-2024 (US$ Bn)
US$2.7 Bn
US$0.3 Bn
1.31.7
3.2
2019 2020E 2024E
PwC | Global Entertainment & Media Outlook
With 57.6mn monthly listeners*, India is the third largest podcast listening market in the world after China and the US
20
Deep dive: music, radio and podcasts
Source: PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Note: 2019 is the latest available data. 2020-2024 values are forecast projections | *people who listened to at least one podcast in the last month
• Fuelled by the uptake of music-streaming brands, the
overall space is forecast to expand to total revenue of
nearly US$1.7bn in 2024, at a 13.5% CAGR.
• The music industry is seeing increasing value in
partnerships with Esports and social media companies
as they look to strengthen their music library for
integration with gaming events, videos, messages etc.
• India will also see strong increase at a 30.4% CAGR in
its monthly podcast listener base over the next five
years, supported by entry of foreign players and original
content on topics including news, society, culture and
sports.
• Ease of voice search coupled with increasing
penetration of smart speakers will further drive segment
revenues over the next 5 years.
India the sleeping giant of the global podcast
market
Music, radio and podcasts segment revenue (US$bn) 2019-2024
99 103120
2019 2020E 2024E
0.80.9
1.7
2019 2020E 2024E
India podcast ad revenue (US$mn) and monthly listeners (mn), 2015-2024
0
50
100
150
200
250
0
20
40
60
80
100
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Po
dca
st m
on
thly
lis
ten
ers
(m
n)
Po
dca
st a
dve
rtis
ing
re
ve
nu
e (U
S$
mn
)
Podcast advertising revenue Podcast monthly listeners
IndiaGlobal
2019-24
CAGR
30.4%
PwC | Global Entertainment & Media Outlook
Preparing for the new normal
21
The Road Ahead
Source: PwC analysis, Secondary research., PwC Global Entertainment & Media Outlook 2020-2024, www.pwc.com/outlook
Changing patterns of
media consumption
will clearly affect
business models – but
will also open up new
opportunities for
capturing growth.
Offer convenience &
accessibility, as consumers
are likely to hold on to some
of their newly acquired habits
Create new (digital)
content propositions,
realize new revenue streams
Optimize revenue mix or
pricing models to emerge
more resilient.
Data, Personalization of
content & advertising, to
capture a bigger share of
wallet.
Digital Acceleration led by
cloud to increase flexibility,
lower costs and minimize
disruptions
Strategic investments &
Alliances in search of scale
and growth
As the industry navigates into the post-pandemic world, six long-term growth opportunities
are emerging.
pwc.com
Thank you
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PwC | Global Entertainment & Media Outlook
Methodology
23
Methodology
• A base line of historic data was collected from publicly available information including from trade associations and government agencies.
• In addition to this, interviews with relevant associations, regulators and leading players have been conducted to gather insights and
estimates not available in the public domain.
• This year, we’ve delayed publication of the Outlook to get a clearer view of the pandemic’s impacts. And we’d like to make highlight that
while our projections are robust, their future accuracy could clearly be affected by the continued rapid changes related to the pandemic,
including policy responses from the Government.
• The data was sourced from both primary and secondary research from a variety of sources.
• A total of 53 countries are represented within this year’s Outlook covering a list of 14 segments covered as below:• Traditional TV and home video
• OTT video
• VR
• Data consumption
• TV advertising
• Internet access
• Newspapers and consumer magazines
• All revenues are estimated in US dollars. The 2019 exchange rates have been applied to all historic and future years to eliminate
fluctuating currencies. ( 1$ = 70.031 INR)
• OOH
• Business-to-business
• Video games and esports
• Cinema
• Music, radio and podcasts
• Books
• Internet advertising