The future is digital and traditional media revenue will continue to shrink in the years to come. That is the message coming out of PricewaterhouseCoopers’ Entertainment Media Outlook 2009-2013 report.
According to the report, revenues for free-to-air television and magazines will contract over the next five years, as digital technologies become increasingly widespread across all segments of entertainment and media.
It said that over the next five years internet revenue would grow on average by 10.4 percent a year and pay TV revenue would grow on average by 9.1 percent a year; while revenues from free-to-air TV and newspapers will contract, on average, by 0.7 percent a year over the next five years and magazines will contract by 0.2 percent.
The Australian advertising market is forecast to grow on average by only 1.7 percent a year over the next five years. This compares with average annual consumer spending growth of 5.5 percent.
The report said consumers are going to be the “growth engine of the future,” and that entertainment and media businesses must adjust their business models so they are not left behind.
According to Marcel Fenez, global leader entertainment & media practice, PricewaterhouseCoopers, businesses that embrace digital will emerge triumphant.
“Inside every cloud is a silver lining and in this case, a digital one. Companies who grasp the opportunities which are appearing in this fast changing marketplace and are agile enough to adapt their business models will be able to take full advantage of the potential and new revenue models as they emerge.”
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