Resetting expectations, refocusing inward and recharging growth, Total Impact Measurement & Management (TIMM), ESG (Environmental, Social and Governance), short-form video content accessed on phones, fell for the fifth consecutive year in 2022, switched off its analogue terrestrial broadcasting signal, highest consumption rate of OTT video in Southeast Asia, regained the right to broadcast NBA games, use of AI in internet search and advertising delivery, frontline customer service representatives, dramatically increase the capability, speed and volume of content production, Hollywood writers, who went out on strike, its streaming business will reach profitability, merger of video streaming company U-Next and Premium Platform Japan, competition regulators in the EU have cleared the transaction, ad revenue of major players such as Facebook, new Digital Services Act and Digital Markets Act, a modernisation of the countrys Privacy Act. Canadian companies are changing strategies, and creating supercompetitors - combining content, technology, and telecom. In the decades since, Comcast has grown through acquisitions such as NBCUniversal, and movie producer DreamWorks Animation. Statistics Canada (2021). The company develops and operates some of Chinas most popular and longest-running mobile and PC games including Knives Out, LIFEAFTER, and the Lord of the Rings series. Budget 2021 A Recovery Plan for Jobs, Growth, and Resilience, Department of Finance Canada, https://www.budget.gc.ca/2021/pdf/budget-2021-en.pdf. And the EU Parliament is currently working on theAI Act, which represents the EUs first significant effort to place guard rails around the rapidly growing technology. These are findings from PwCs Global Entertainment & Media Outlook 2022-2026, the 23rd annual analysis and forecast of E&M spending by consumers and advertisers across 52 countries and territories. The increasing availability of fast and cheap internet, rising incomes, and increasing purchases of consumer durables have significantly aided the industry. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 1000+ markets in 190+ countries & territories, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. In the coming years, armed with powerful technology, leaders will have to be more creative about how they create, distribute and monetise products and services. Discovery hascancelled films such as Batgirl, and itshut down CNN+ just a few weeks after its launch. The big winner was Zhang Yimous historical blockbusterFull River Red, which quickly became the countrys top-earning film of the season. In the U.S., 2020 media and entertainment industry revenue fell 4.5 percent from $717 billion to $685 billion, but it will consistently grow to reach $855 billion in 2025 after getting to nearly . Golf courses and country clubs benefited from an increase in rounds played but were nevertheless affected by pandemic protocols on social events and indoor public gatherings.Note. Table 21-10-0196-01 Newspaper publishers, advertising sales by type of format (x 1,000,000) [Data table]. If enacted, it will be the first comprehensive federal privacy law in the US, granting consumers more control over their personal data and its commercial use. As governments worldwide grapple with the implications of new and powerful technologies whose impacts are uncertain and evolving, weve seen efforts to contain, constrain and even ban new products and services. The slowdown, caused in large measure by sluggish consumer spending, is pushing companies to reset expectations, refocus inward and seek ways to recharge growth. We have the experience and agility to partner with clients from individual investors to global CEOs. Inflation. The story now, and the potential for growth, lies in the convergence of existing and emerging technologiesmost notably AI, and specifically generative AI. A clear indicator of how astronomically high the multiples in the entertainment industry is the comparison of entertainment's 2021 forecasted EV/EBITDA multiple to that of the broader market. In particular, the golf courses and country clubs industry experienced even smaller declines in financial standing (Chart 7). Revenues have been growing at an average rate of 11.8% per year. Still, this growth will be insufficient to offset a 5.6% CAGR reduction in print circulation revenue over the next five years. Multicultural and women entrepreneurs are the cutting-edge leaders of businesses that power markets. A career at Morgan Stanley means belonging to an ideas-driven culture that embraces new perspectives to solve complex problems. Manager, Global Corporate Affairs & Communications, PwC United Kingdom, Partner, Due Diligence und Data Analytics & Technology, PwC Austria, National Media & Telecom Lead, Assurance Partner, PwC Canada, Mainland China and Hong Kong Media Leader, PwC China, Socio Lder Consultora de Negocios, PwC Colombia, Partner, Strategy Consulting, PwC Finland, Associ Mdias et Loisirs, PwC France et Maghreb, Global Entertainment & Media Leader, PwC Germany, Partner, Leader - Entertainment and Media, PwC India, Partner, COO & Entertainment, Media & Communications Leader, PwC Israel, Partner | Technology, Media and Telecom Leader, PwC Italy, Partner, Consumer & Industrial Products and Services Leader, PwC Kenya, Assurance Partner and Technology, Media and Telecommunications Leader, , PwC Malaysia, Socio Lder de TMT & Digital Services, PwC Mxico, Deals and Corporate Finance Partner, PwC Philippines, OMV Petrom Group Engagement Leader, Romania, Partner, Entertainment and Media Leader, PwC Singapore, Entertainment and Media Leader, PwC South Africa, Director Advisory, Strategy and Digital Change Expert, Bern, PwC Switzerland, Global Entertainment & Media Deals Leader, PwC United States, Partner, Transaction Services Leader, PwC Vietnam, Global Technology, Media and Telecommunications (TMT) Industry Leader, PwC China, Global Technology Industry Leader, PwC United States. Many performing arts industries will be among the last to reopen, and it may take significant time before audiences, visitors and tourists return and companies can resume operating at the same scale as before the pandemic. The entertainment industry includes a broad range of companies providing telecommunications services, streaming, television, music, video games, and live concerts. 2018 China surpassed the US to become the worlds biggest cinema market in 2020, and is expected to retain this leadership through 2026. Statistics Canada (2021). Canada's entertainment and media industry revenue to grow by 3. - PwC Definition and Examples, DuPont Analysis: The DuPont Formula Plus How to Calculate and Use It, Disney+ Launches Todayand a New Era of Disney Entertainment Begins, The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2022, Beasts of No Nation: First Original Netflix Movie Release in Oct. Comcast Corporation, the Walt Disney Company, and Netflix are the top three entertainment companies by TTM revenue. With many movie theatres closed and with changes to film festivals during the pandemic, the motion picture and video exhibition industry was significantly affected financially. All rights reserved. Older age groups are also becoming comfortable with the medium, with the report finding that 55% of Canadian adults streamed music videos in 2017. Despite reliance on the news industry for information about the pandemic, financial strains worsened for media publishers, leading companies to restructure, permanently or temporarily shut down, or modify their production schedules. Advertising is in the ascendancy. Please email us at, Investopedia requires writers to use primary sources to support their work. In 2020, newspaper publishers saw an estimated decline of 20.6% in operating revenue, while it fell by 23.6% for periodical publishers. A communication industry ETF invests in securities in the communication sector, including telecommunications, media, and internet companies. Discovery announced thatits streaming business will reach profitability a year ahead of schedule. Werner Ballhaus added: With the impressive growth and potential of the E&M industry, comes tremendous volatility and what we describe as fault lines and fractures opening up between companies, within sectors and across geographies and generations. The pic has a critical score of 84% . The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making significant strides. Global institutions, leading hedge funds and industry innovators turn to Morgan Stanley for sales, trading and market-making services. At best, then, the media and entertainment sector may offer a cautionary tale. In May 2023, Warner Bros. Top 20 countries by filmed entertainment revenue | Statista China and Japan followed with approximately seven billion and. Thursday, 22 June 2018 Canadas entertainment and media sector has entered a dynamic new phase and according to PwCs Global Entertainment & Media Outlook 2018-2022 (Outlook), total revenue for the industry is projected to rise at a compound annual growth rate (CAGR) of 3.7% ( vs. 2.8% last year) over the next five years. 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Variety and the Flying V logos are trademarks of Variety Media, LLC. Which players in the entertainment economy stand to benefit from the current environment? PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Meta termed 2023 the year of efficiency. With virtually every major player shedding jobs, layoffs in the tech sectortopped 168,000 in the first four months of 2023. As fault lines proliferate and widen, every business in E&M stands to be disrupted. At a regional level, North America commands by far the highest E&M spend per capita, at US$2,229, nearly double Western Europes US$1,158. The pandemic created a difficult environment for businesses in the culture, arts, entertainment and recreation sectors, but at the same time accelerated digital trends. Global Entertainment & Media Outlook 2022-2026 - PwC By contrast, Asia Pacific, which was the largest E&M region by revenue in 2021 at US$844.7bn, has per capita spend of US$224. Lionsgate's The Blackening at 1,775 theaters per industry estimates is eyeing $2.3M today (including $900K previews), $5.5M 3-day and $6.3M over four days. Global Streaming Video Revenue to Hit $94B In 2025, PwC Forecasts In Australia and the UK, these two lines have already crossed. Were a network of firms in 152 countries with over 328,000 people who are committed to delivering quality in assurance, advisory and tax services. 4 things to know about the future of media and entertainment Netflix hascracked down on password sharing by subscribers. Table 21-10-0200-01 Book publishers, summary statistics [Data table]. After treatment, data from the goods and services tax (GST) and payroll deduction (PD7) files were historically comparable for most service-producing industries and acted as a coherent proxy for preliminary estimates of operating revenue and salary, wage, commission and benefit expenses for 2020. With GDPR continuing to influence data privacy regimes worldwide, the EU has updated its rules on digital services with thenew Digital Services Act and Digital Markets Act. Universal Music Group NV operates businesses engaged in recorded music, music publishing, merchandising, and audiovisual content in more than 60 territories. Asia, 77 trn MB The projected growth of data consumption in Canada by 2023 Explore, compare and contrast Understanding where consumers and advertisers are spending their money in the entertainment and media industry can help inform many important business decisions. The news industry relied on government assistance during the pandemic, as did many other industries. Live music revenue is projected to exceed pre-pandemic levels in 2024. To this end, the Agency has developed standards of service which its employees observe in serving its clients. For other industries that were already restructuring before the pandemic, such as newspaper publishers, the pandemic has further exacerbated a downward trend in operating revenue and labour expenses. In India, AI is enabling brands to reach across the countrys many languages and regions with generic templates that can be adapted and customised to different geographies with local messaging. Huju Liu, Yuqian Lu and Michael Willox, Use of the Canada Emergency Wage Subsidy program by employer businesses in 2020 Statistics Canada, June 23, 2021, https://doi.org/10.25318/36280001202100600006-eng. Total revenue in the Entertainment market is projected to reach US$27.86bn in 2022. In turning a product into a platform, AMC Networks also turned a show into a cultural phenomenon that invited fans to interact and co-create. "History," Select Years "1963, 2011 and 2016. Total global entertainment and media (E&M) revenue rose 5.4% in 2022, to US$2.32 trillion. Taxed by inflation, weary from the lingering effects of the pandemic, and facing the uncertainties of war and geopolitical instability, consumers are pulling back. The pace of OTT revenue growth will moderate somewhat; it is expected to grow at a 7.6% CAGR through 2026, pushing revenues to US$114.1bn. Fox Corp. develops and licenses a variety of programming including news, entertainment, sports, and other content. But while this demand strength is largely in place across the 25 companies in our coverage group, the ability to translate that strength into earnings upside varies widely.. The entertainment and media industry has always been, at root, a creative endeavour. For the first time, the eSports sector has made its way to the Canadian report, representing projected total revenues of CAD$40M and a CAGR of 22.7% over the next five years. So too will advertising, as companies strive to get their names in front of eager buyers. While some businesses were able to operate in innovative alternative ways by operating digital shows, classes or events, it was not enough to mitigate the financial pressures. From our origins as a small Wall Street partnership to becoming a global firm of more than 80,000 employees today, Morgan Stanley has been committed to clients and communities for 87 years. Entertainment & Media Outlook 2019-2023 | PwC Canada Apps exclusively offered by Microsoft Store and Amazon Appstore for Android. Werner Ballhaus, Global Entertainment & Media Industry Leader, PwC Germany, said: Industry press tends to focus on the companies that have dominated the E&M industry. A closer look reveals which components are growing most rapidly. Net Income Free Cash Flow Net Cash Flow Capex Profitability Valuation Financial Strength Efficiency Mgmt. Japanese conglomerate Rakuten operates its own platforms and offers third-party channels. 5 Sustainable Investing Trends for Companies and Investors, 7 Investment Ideas That Could Drive Markets in 2023, Yes, You Can Be a Tech Innovator at Morgan Stanley.
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