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PwC today released its latest media industry forecasts for Australia.
The 20th edition of PwC Australia’s annual Australian Entertainment and Media Outlook revealed that total Australian advertising spend contracted by 8% to $15.4 billion in the year to December 2020.
At a glance:
- In 2020, the overall entertainment and media industry in Australia fell 3.6%, an unprecedented drop that had an unequal impact across the sector.
- Despite the challenges of last year, 2021 is showing signs of a strong recovery for most, although the shadow of COVID-19 has not yet departed.
- Consumer revenue forecast to grow to $52.6 billion in 2025, at a CAGR (compound annual growth rate) of 3.3%.
- Advertising revenue to grow to $19.6 billion in 2025, at a CAGR of 2.6%
- Internet advertising recorded growth of 3.3% in 2020 reaching $9.3 billion and is expected to grow at 5.5% a year to 2025.
- Streaming Video On Demand (SVOD) revenues will grow at a 20.4% CAGR through to 2025, becoming a US$81.3 billion industry globally and an estimated $3.3 billion in Australia.
- Broadcast Video on Demand (BVOD) revenue grew 38.8% in 2020, and will continue to grow with a CAGR of 32.7% to 2025, continuing to grow its overall share of attention.
- Interactive games and esports revenue in Australia reached $3.4 billion in 2020, and is expected to increase to $4.9 billion in 2025 at 7.5% CAGR.
- Out-of-home (OOH) saw a 39.0% decrease in year-on-year revenue to $772 million, although it is starting to see a recovery, with year-on-year revenue continuing to improve since the second quarter of 2020 (April - June).
- Television. The total FTA advertising market fell 9.8% in 2020 due to a significant contraction in marketing budgets. Linear TV dropped 12.1% to $3.1 billion. BVOD offset some of this with growth of 38.8% and a revenue contribution of $229 million. The total market is expected to return to growth in 2021, followed by a annual growth of 2.5%. Linear TV will see a CAGR of -0.7% to 2025 and BVOD up 32.7%a year to 2025.
- Radio fell 8.1% in 2020 to A$1.5 billion. Advertiser demand for radio is returning. Terrestrial radio market is forecast to fall 1.1% to 2025. The streaming/internet radio market will rise 12%. Total radio market forecast to rise 3.6%.
- Newspapers. The value of news media as a reliable and trusted source of information and insight was heightened in 2020. While digital advertising revenues fell 5.5% to $463 million, digital subscriptions increased 23.5% to $375 million in 2020. Print advertising revenue is expected to fall at a CAGR of 10.2% to $609 million to 2025, print circulation revenue is forecast to decline at a CAGR of 5.1% to $577 million. Digital news display advertising revenue will grow at a CAGR of 3.8% to $611 million. Digital subscriptions will grow, reaching $580 million, an increase of 11.4% CAGR. The total newspapers market growth is forecast at -2.3% CAGR to 2025.
- Filmed entertainment. Box-office revenue in Australia fell by two-thirds in 2020. Provided the supply of blockbusters – including the much delayed James Bond film No Time To Die – can resume, box office revenue is forecast to continue recovery at a -0.2% CAGR between 2019 and 2025, reaching A$1.2 billion in 2025.
- Consumer magazines. Total consumer circulation revenue is forecast to decline from $389 million in 2020 to $272 million in 2025 at a -9.5% CAGR
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