The entertainment and media industry has seen a sharp rise in the past year, globally. Following a 2.3% drop recorded in 2020 due to the pandemic, the sector’s turnover rebounded with a strong 10.4% increase, reaching 2.34 trillion. USD in 2021 against 2.12 trillion USD a year earlier. These findings emerge from PwC’s Global Entertainment & Media Outlook 2022-2026 survey, the 23rd consecutive annual analysis and forecast of spending in the industry in 52 countries, including Greece.
According to the key findings of this year’s research, the total turnover of video games and esports worldwide amounted to 215.6 billion dollars in 2021, while it is predicted to register a compound annual growth rate (CAGR) of 8.5% until 2026, reaching $323.5 billion
Virtual reality is still the fastest growing segment of the industry, albeit starting from a relatively low baseline. In absolute terms, global spending on virtual reality grew by 36% year-on-year in 2021 to reach $2.6 billion, following the explosive growth of 39% it recorded in 2020. Accordingly, the average annual growth rate between 2021 and 2026 is expected to form 24%, raising the value of the category to 7.6 billion dollars.
After falling nearly 7% in 2020, advertising grew an impressive 22.6% in 2021, reaching $747.2 billion. Driven almost entirely by the digital environment, it is expected to record an average annual growth rate of 6.6% to 2026. Even higher is the CAGR for online advertising revenue, estimated to reach 9.1% by 2026.
After an impressive 35.4% growth recorded by Over The Top (OTT) video in 2020, the rise continued at an impressive rate of 22.8% in 2021, bringing the annual turnover to $79.1 billion. Over the next few years, the average annual growth rate is expected to moderate to 7.6% by 2026, pushing the category’s revenue to $114.1 billion.
Traditional TV, while being hit by both streaming services and Over The Top video, still generates significant revenue. However, it will continue to record a downward trend, with a negative average annual growth rate of -0.8%. Thus, worldwide revenue is expected to shrink to $222.1 billion in 2026 versus $231 billion in 2021.
Global cinema revenues are recovering, reversing losses caused by the pandemic, and are expected to set a new all-time record, reaching $46.4 billion in 2023. Ticket revenues are expected to reach $49.4 billion in 2026 against $20.8 billion in 2021, registering an annual growth rate of 18.9%.
Live music revenue is forecast to surpass pre-pandemic levels in 2024. Music streaming subscriptions are a growth driver for the industry, with revenue forecast to rise from $36.1 billion in 2021 to $45.8 billion. dollars in 2026.
A total of 2.6 million petabytes (PB) of data was consumed in 2021 and is expected to register a CAGR of 26% to reach 8.1 million petabytes by 2026. The video game industry is expected to be the fastest growing as towards data consumption, registering a CAGR of 29.6% through 2026. Accordingly, mobile devices will be the fastest growing device category between 2021 and 2026, registering a CAGR of 28.8%.
The metaverse is one of the smallest subsets the research tracks, but the 36% increase in spending globally over the past year is indicative of the long-term potential. The global base of virtual reality devices is projected to grow from 21.6 million in 2021 to 65.9 million in 2026.
Emilios Melis, Partner, Strategy Consulting Leader, PwC Greece, adds in this regard: “The impressive growth and potential of the sector are causing realignments at global and local levels. The Greek market, with its continuous upward trend, seems to be following global trends as we see that even growth sectors such as video games and esports are projected to grow at an average annual rate of 6.4% over the next five years, largely due to the pandemic-induced habit changes that have shifted users to instantly accessible gaming applications that do not require equipment.At the same time, we are seeing consumers increasingly turn to digital media and Over The Top (OTT) video applications, causing print forms of entertainment and information such as books and newspapers to steadily lose ground. this trend shows that every company in the sector is expected to experience tectonic a colors. Their challenge and goal should be to understand their consumer and get them on the right side of change.”
SOURCE: AMPE
Source: Capital
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