Substantial Market Opportunity:
The entertainment and media sectors are an established and important part of the UK economy, accounting for more than £54 billion of economic output which is approximately 4% of GDP. The sector is expected to grow by 3.1% per annum over the next 5 years.
The PWC 2017 Global Entertainment & Media Outlook* predict the UK sector will grow at a compound rate of 3% per annum over the next 5 years to be worth £72 billion by 2021. Digital services will account for over 60% of all spend in the sector growing at 5.8% CAGR per annum.
Within the wider industry, the worldwide music publishing industry has grown by 5.3% over the last 4 years, supported by new methods of monetising music publishing royalties from online broadcasts and streaming in addition to the traditional sources of revenue – for example, from TV broadcasts and record sales. Similarly, the global demand for television programmes has grown by 5% in the last 5 years, and increasingly discerning consumers are demanding higher quality television productions which are achieving higher prices supported by additional advertising or subscription revenues for broadcasters.
Much of this growth is being driven by fundamental shifts in the way people receive content and where Mobile operators are responding to users’ demand for streaming video by emphasising their unlimited wireless data offerings in their marketing. Streaming video devices and smartphones are becoming the channel of choice for both old and new generations of customers. This, added to the range of delivery mediums that consumers have access to – such as iPlayer’s, Netflix and Amazon and many more means that the market is forecast to double again by 2022. (Source – PWC Entertainment Media Outlook)
These developments foreshadow the Entertainment and Media (E&M) industry’s rapid transition to a direct-to-consumer world, where most content will remain the same but the packaging and distribution will change significantly. Specifically, the expansion of digital technology, manifested in more ubiquitous fixed and wireless network connectivity enabling growing numbers of connected devices and new routes to the user, is altering the industry’s structure, driving new ways to produce, distribute, and monetise content across its landscape. Creators can more readily pursue opportunities outside traditional studios and distribution channels. Consumers have far more content to choose from, available to them at any time, in any mix, through many more delivery options and devices.
In every corner of E&M, empowered users are gravitating to brands, experiences, and platforms that are differentiated as much by the quality of their curation, customisation, and convenience as by the quality of their content.