Encouraging growth tipped for media & entertainment

By By Reid Jermyn | 1 August 2011
 

Computer tablet sales will rocket to 5 million by 2015 and newspaper sales will rise - but magazines are in more trouble according to the latest media and entertainment crystal ball from PricewaterhouseCoopers.

Australian media and entertainment will out-perform every other national economy’s – one in four people will own a tablet computer – and spending on things like live shows, sporting events, iPads and games will also grow to $37.2 billion annually by 2015.

PwC believes consumers will dominate the next five years – meaning our demand for more of what we have is set to increase rapidly.

Part of that will be driven by more than five million tablet computer sales, according to PwC.

PwC predicts the tablet will become the most commonly used device to download news, films, music, TV and games in an estimated three million homes around Australia by 2015.

And as our demand for products like consoles, phones and tablets increases so to will the demand for the gamer market, which is expected to grow by an estimated 9.5% by 2015.

Live entertainment, worth around $1.8 billion to the local economy in 2010, is also expected to grow by the year 2015. Last year, more than seven million people piled into stadiums to watch their favourite AFL team, while round three million attended the NRL.

Compounded annual growth of 4.1% is scheduled for the media and entertainment industries. That’s around 22% over the next five years, and is slightly better than the 21% pitched for the US, UK, French, German and Japanese economies.
 
Newspaper sales are also set to improve but the forecast for consumer magazines and recorded music doesn’t look as bright.

PwC said hard times faced by the Australian magazine industry have been underlined by the fact that globally, growth in the sector has been reduced to 1.9% from now until 2015.

However, internet advertising will experience growth of 13.5% (with an expected peak of 18.9% in 2013) before settling at around an annual basis of 10.8% throughout 2014 and 2015.

Out-of-home advertising is expected to grow at around a rate of 5.4% annually.

Subscription TV looks to be the winner in the digital race, with revenue is expected to grow by 5.1% compared with free-to-air which has been conversatively pegged at 2.3%.

PwC head of technology, information, communications and entertainment David Wiadrowski, who predicts advertisers will invest around $15 billion annually by 2015, said the media and entertainment market will be dictated to by consumers.

“We are in a golden age for consumers as entertainment and media organisations look to find new models to meet the needs of empowered consumers who are increasingly time poor but digital-savvy,” he said.

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