No place to hide in entertainment & media sector

Findings from PricewaterhouseCoopers’ Global Entertainment & Media Outlook 2009 - 2013 show that digital technologies will become increasingly pervasive across all segments of entertainment and media over the next five years.

There will be no place to hide from the impact of the new models and dynamics across the industry. This change will manifest itself across three parallel dimensions:

1. Economic - The current economic downturn will accelerate and intensify the migration to digital technologies among both providers and consumers of content.

2. Consumer behaviour - The accelerating digital transformation will in turn reinforce and proliferate new consumption habits and digital behaviours, as consumers seek more control over where, when and how they consume content, as well as higher value from their entertainment and media choices.

3. Advertising - As these digital behaviours become more widespread and embedded, a new generation of ad-funded revenue models will emerge, aiming to reflect and capitalize on the evolving consumption habits by delivering advertising that is more targeted and relevant to the specific audience.

PwC’s findings show that the UK’s entertainment and media market will experience a cumulative 7% decline in revenue from 2008-2010, from $92 billion to $85 billion.  A decline in advertising and a change in consumer spending behaviour will push the market to its lowest revenue figures since 2005. However, from this point, entertainment and media will flourish, with consumer spend and advertising driving the market to $98 billion in 2013.

Phil Stokes, PwC’s UK Entertainment and Media leader, said, “E&M growth slowed to 1.5% in the UK in 2008 and we expect a cumulative 7.2% decline over the next two years as the economy continues to struggle. Although we expect a rebound beginning in 2010, internet access, internet advertising, TV subscriptions and license fees, filmed entertainment and video games will be the only segments that will be larger in 2013 than in 2008.”

More information about the Global Entertainment & Media Outlook 2009 - 2013, including key findings by industry, its international coverage and how to obtain copies can be found at www.pwc.com/outlook