Virtual reality

Global entertainment and media revenues rebound to surge past $2 TN | Media Analysis | Business | News

Global entertainment and media revenues rebound to surge past $2 TN |  Media Analysis |  Business |  News
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Following a pandemic-related 2.3% decline in 2020, the global entertainment and media (E&M) market is very much on the rebound with 2021 revenues rising by 10.4% over the course of 2021, to total $2.34 trillion sys a study from PwC.
PwC’s 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 – found that the E&M industry surged ahead in 2021, strongly outpacing overall global economic growth. With the industry becoming more digital, more mobile and more youth-oriented, virtual reality (VR) and gaming are powerful growth drivers, while digital advertising permeated all of the industry.

Among the industries surveyed, PwC found that traditional TV, beset by competition from over-the-top (OTT) streaming services, generated what it called “considerable” revenues, but that its inexorable decline will continue, with global revenues projected to shrink by a CAGR of 0.8% from $231 billion in 2021 to $222.1 billion in 2026. After growing by 35.4% in 2020, OTT video surged another 22.8% in 2021, pushing revenues to US$79.1 billion. PwC expects the pace of OTT revenue growth to moderate somewhat, up by a CAGR of 7.6% through to 2026, pushing revenues to $114.1 billion.

VR continued to be the fastest-growing E&M segment, albeit from a relatively small base. Global VR spend rose by 36% year-on-year in 2021 to $2.6 billion, following on the hot 39% growth in 2020.

“We are seeing the emergence of a global E&M consumer base for the coming years that is younger, more digital and more into streaming and gaming than the current consumer population. This is shaping the future of the industry,” said Werner Ballhaus, global entertainment & media industry leader, PwC Germany, commenting on the key trends revealed in PwC’s Global Entertainment & Media Outlook 2022-2026.

“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…intense competition and continual disruption will remain the order of the day. As fault lines proliferate and widen, every business in E&M stands to be disrupted. The challenge and goal must be to understand your consumer and end up on the right side of disruption.”

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