PwC Global Entertainment and Media Outlook 2009–2013

Was invited to speak at the PricewaterhouseCoopers Canadian launch of their Global Entertainment and Media Outlook 2009–2013 on June 17, 2009.

Global Entertainment and Media Outlook: 2009-2013

Some quick stats that PwC is predicting:

• Over the next five years, overall spending on entertainment and media in North America to grow by 1.3%
• In Canada, Video game, internet advertising (wired and mobile), and digital everything is expected to see the biggest increases. As an example, Consumer magazine print advertising will increase by only a 2.3% cumulative annual growth rate (CAGR) versus a 29.6% CAGR for Consumer magazine Internet advertising
• Revenues will increase at compound annual rates > 5% for Internet access, internet advertising, video games and TV subscriptions
• Others won’t fare as well. Recorded music, TV advertising, newspaper publishing and consumer magazine publishing will all have lower revenues in 2013 than in 2008
• Filmed entertainment is the only segment expected to have faster growth in 2009 than in 2008 (1.1%), with 3D releases driving significantly more revenue than 2D
• Overall, growth of any significance isn’t expected until at least 2011

According to PwC, consumers seek (1) more control over where, when and how they consume content and (2) higher value from their entertainment and media choices. As well, companies will need to deliver advertising that is more targeted and relevant to the specific audience.

Consumers will be happy to hear that, unlike the earth, they are at the centre of the universe. According to Pary Bell (Rogers), it is one of the most exciting times to be a consumer. A key indicator that consumers are taking control is the growth in social networking and the readiness of people to create and share user generated content across the Internet.

Expect increasing use of social networks, with companies wanting to learn from their audience. Consumers looking for information are more interested in what’s in people’s heads, as opposed to what’s written on paper, so facilitating a dialogue is important. Companies see the value in engaging and interacting with their customers, and learning more about what customers want from them. According to PwC, the companies that emerge as the winners in the new environment will do so by embracing digital migration.

Social media and online, digital content enables more targeted and measurable advertising, compared to traditional methods. The key in today’s world, according to Scott Dyer (Corus) is to be flexible and agile. The trick for media and entertainment companies is to figure out how to monetize content through changing business models and easy access to content.

Cross-platform approaches to content and marketing is important to success, leveraging an on-line experience with mobile and traditional methods.

Based on some of the comments, consumers can expect less free content going forward, as content producers, owners and distributors continue to struggle between keeping content scarce and making it ubiquitous.

Most importantly, the launch was followed by some good industry mingling and tasty hors d’oeuvres.

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• Tracey Jennings Jun. 30th Hi Mark, Thanks again for participating in our event. Your insights were very much appreciated. Cheers Tracey

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