Key takeaways

  • Entertainment and media companies must prioritise innovation in product and consumer experience to remain successful.
  • The mobile paradigm is tending towards the internet of things.
  • Data is critical to the future marketing landscape.

The PwC Australian Entertainment and Media Outlook is a research report that delves into the consumer and business trends that affect segments such as internet, radio, print publications and interactive games*.

Now in its 14th year, ahead of the report’s official launch, lead partner David Wiadrowski defines key insights into the entertainment and media industries.

The theme for the forthcoming PwC Entertainment and Media Outlook is ‘Innovation in Australia –“Having a go”’. We chose this because we believe it is critical for those entertainment and media companies that will be successful in the future to have a strategy that positions innovation as a key priority, both in terms of product and consumer experience.

Our special feature uncovers the views of significant players in innovation in Australia. PwC spoke to providers and recipients of investments in innovation, from successful crowd-funded businesses in the sharing economy and angel networks right along the funding spectrum to private equity and corporates setting up in their own venture arms.

The Australian start-up sector has the potential to contribute $109 billion (or 4% of GDP) to the economy by 2033, according to our research.

While technology underpins nearly all disruptive start-ups, innovation goes beyond technology and can be applied to service, relationships, content, distribution, business models and funding.

Making mobile work

“The great mobile transition” has been one of the recent key drivers of both challenges and opportunities for existing and yet-to-be-developed business models in entertainment and media. This description reflects the consumer’s continually growing appetite for consuming content when they want, where they want and on one or more mobile devices.

In 2014, total Australian entertainment and media spend – comprising both advertising revenue and consumer expenditure on entertainment and media products and services –  grew by 3.3% compared to 6.2% globally and 8.8% in Asia-Pacific.

Consumer spending continued to grow in 2014 by 3.8% despite some uncertainty in the economic environment but reflects consumers’ willingness to embrace and make mobile a very important part of their lives.

This has driven strong growth in those segments where consumers acquire and consume content on their smartphones or tablets, such as interactive games and video on demand.

Marketing & advertising

Advertising grew by only 2.4% but is very much a story of two halves: the traditional segments of TV, newspapers and magazines continue to struggle to monetise their digital offerings and respond to changing consumer behaviours while internet adverting, radio and out-of-home advertising (reaching consumers while they are on the go) continue to flourish with very strong growth rates.

If we look at the history of the internet, we have seen a fascinating shift from destination devices (PCs), to accompanying devices (smartphones, tablets), to now currently integrated devices (smartwatches and wearables) and in future, the internet of things, where numerous household devices become internet connected.

This continuum provides a wealth of data that underpins dramatic changes in marketing and advertising, including programmatic ad serving, social media and owned media.

Outlook 2015 also extends the preceding report’s theme of ‘The changing role of marketing’ by looking at the future state of marketing to 2019. Considering what the marketing and media landscape will look like in the next five years, it reaffirms that data is critical in each step of the marketing value chain.


The Australian edition of the PwC 2015-2019 Entertainment and Media Outlook will be launched on 16 June 2015. Purchase your copy of Outlook 2015 at www.pwcoutlook.com.au.

The Sydney launch event will be broadcast live on Thursday 18 June at 3.30pm, with replay available from 19 June. To view the broadcast, please visit this link.

 

*PwC 2015-2019 Entertainment and Media Outlook provides five years’  of historical data and five years’ of forecasts across 11 segments: consumer and educational books; consumer magazines; filmed entertainment; free-to-air television; interactive games; internet; music; newspapers; out-of-home; radio; subscription television. It also provides commentary on the key trends and insights in each of those segments.

 

Contributor

David Wiadrowski

David Wiadrowski is PwC’s Technology, Infocoms, Communications and Entertainment (TICE) Leader.

More About David Wiadrowski