PwC: Choice, Innovation, and Experience Are Key to Sustaining Future Growth

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By Becky Johnson

The honeymoon is over, and it’s about time. While Price Waterhouse Cooper’s Phil Stokes, U.K. Head of Entertainment and Media, is quoted as saying, “This is a bigger global disruption than the Industrial Revolution,” there is some stabilization on the horizon.

Price Waterhouse Cooper (PwC) has released their PwC Global Media and Entertainment Outlook 2016-2020, complete with staggering amounts of data from 2011-2016, and forecast data for 2016 to 2020. The entirety of the document focuses on EMEA, with particularly interesting details on new mobile subscriber forecasting, while current subscriber markets are predicted to achieve normalization.   

PwC also predicts, “The U.K.’s Entertainment and Media (E&M) sector is set to overtake Germany and become the largest in Europe, the Middle-East and Africa (EMEA) according to PwC’s latest Entertainment and Media Outlook. The research shows that the United Kingdom’s E&M sector will be worth £62.8bn in 2017, overtaking Germany’s £58.6bn. This growth will continue over the following three years, by reaching a projected £68.2bn, in comparison to Germany’s £61.3bn by 2020.” If you’re looking to plan your advertising and marketing budgets over the next half of the decade, you may want be sure to diversify between the UK and Germany accordingly.

In markets where internet access, mobile subscribers, and TV subscribers have stabilized, media markets are finding user data is equalizing more across mediums. While consumer tracking is ever-evolving, consumers across mediums, such as traditional PC or TV advertising to mobile device, are responding more favorable to quality, seamless user experience (UX) more than anything. As Phil Stokes puts it, “It's increasingly clear that consumers see no significant divide between digital and traditional media: what they want is more flexibility, freedom and convenience in when and how they consume any kind of content.”

PwC predicts revenue from mobile will increase in 2017, but it will take advertisers to make that leap of faith, and put in quality UX. PwC predicts by 2020, mobile will have 50% of the internet-usage market share across ¾ of global countries.

While traditional mediums haven’t seen the sky-rocket growth that internet and mobile have, PwC reports that the decline has slowed, and in even some markets, such as radio and TV, have returned to growth.

The net-net is, globally, there’s still growth to be had in connectivity – more markets are still coming online, as it were, and that part is still expanding. However, the markets that are old hats now, and have the historical data, are starting to equalize in advertising market share. TV is coming back strong with new innovations, the video game market is huge and largely untapped, and radio and news are staying afloat. Mobile will outpace traditional internet, but consumer data tracking is still a developing field in that arena.

Phil Stokes concludes: “Put simply, today's entertainment and media industry is about consumer choice, innovation and experience, irrespective of whether delivery is digital or non-digital. Mastering these three elements is now critical to commercial success -- and to sustaining future growth.

“Melding what people watch to what people buy can unlock a treasure trove of insight for media companies across the ecosystem.”