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2. advertising and marketing
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Entertainment & Media Outlook 2014-2018
A look at Global, Middle East and Africa trends
The Digital Mindset
Entertainment & Media (E&M)
Outlook Highlights
Internet is driving 27.4%
global E&M growth by
2018
China will overtake
Japan as the world’s
second largest E&M
market
Digital advertising
revenue is outpacing
consumer spending
revenue
By 2018, Internet
Advertising will be
poised to overtake TV
as the largest advertising
segment
KSA is forecasted to be
the highest growth video
games market at CAGR
23.7%
For Middle East &
Africa (MEA) total E&M
spend will increase from
US$43.5 bn in 2014 to
US$65.9 bn in 2018
Mobile at 21.5% CAGR
will outpace Classifieds
to become the third
largest revenue stream,
after Search and
Display, within Internet
Advertising
Mobile will generate $3
out of every $5 dollars
spent on Internet Access
in 2018
Global Entertainment & Media trends
414
636
By 2018, 52% of global
households will have
fixed broadband
2013
2018
and 55% of people will
have mobile internet
access
515
759
Television and Internet will exceed
50% market share of advertising
spent, growing at the expense of
Print
MEA region is dominated by pan regional
free to air satellite services. With
increasing TV penetration and growing
maturity, the TV advertising market has
seen double digit growth despite the
economic and political turbulence. We
forecast MEA to be the fastest-growing
region globally with 12.1% CAGR for TV
advertising. TV subscription is expected
to grow at 7.3%, with KSA’s forecasted
CAGR of 16%.
TV On Demand (TVOD) in the MEA is
expected to increase to US$132 mn, up
from virtually nothing.
Failure to embrace new
audience measurement
metrics will see TV lose
advertising revenue to
other digital media players
(smartphones, tablets and PCs)
Advertising
Advertising spent by all sectors of the economy on media platforms (TV, Internet
Advertising, Radio, Magazine, Newspaper, Out-of-Home )
Internet
Access
Internet Access related income of telecom or ISP provide
North America
Western Europe
4.8%
3.0%
Global
Latin America
5.5%
8.8%
Middle East and
Africa
12.1%
Central and
Eastern Europe
7.0%
Asia Pacific
5.8%
Global TV advertising revenue market share (%) by category,
2013-2018
Terrestrial
Multichannel
Online TV
73.1%
24.7%
2.2%
68.4%
27.1%
4.5%
2013
•
Covers every media segment that contains consumer revenues (i.e, cinema ticket, cable TV subscription, an online magazine subscription, etc.)
2018
TV advertising platform forecasted
to reach US$215 bn and TV
subscription revenue forecasted to
reach US$236 bn in 2018
Consumer
TV advertising revenue, CAGR by region (%), 2013 – 2018
Despite the growth of over-the-top
(OTT) services, traditional TV remains
dominant:
•
875
Total of US$2,150bn
Total of US$1,688bn
Traditional TV - not to be
daunted by the rise of OTT
640
Filmed Entertainment - China driving global growth
Global Filmed Entertainment spend by category
2013 – 2018 CAGR
Box office
4.9%
Electronic home video
19.9%
-4.8%
3.6%
$22.7bn
Globally OTTStreaming Video on
Demand will reach
US$22.7 bn by 2018,
up from US6.5$bn in
2013, a CAGR of 28%
3rd
China 3rd
largest in
2018
In 2018, global
electronic home video
revenue will exceed
physical home video
revenue (sale and
rental of DVDs and
Blu-ray discs)
Filmed Entertainment
revenue will surpass
US$100 bn by 2018
as emerging markets
drive growth. China
is expected to become
the 3rd largest global
market for filmed
entertainment in 2018
(behind US and UK, and
overtaking Japan)
As new platforms
grow in popularity,
traditional
distribution of video
content and release
windows will continue
to contract and evolve
7.2%
KSA is the highest growth country for
filmed entertainment at 36% CAGR
driven by home video
MEA CAGR forecast for
Filmed Entertainment
Physical home video
Cinema advertising
Globally OTT
Streaming will
account for $1 of
every $5 dollars of
revenue generated
in the filmed
entertainment
segment
$5.9bn
China’s box office resilience underscores
the continuing popularity of the
cinematic experience hence, we forecast
it to rise from US$3.1 bn in 2013 to
US$5.9 bn in 2018
Egypt has been the traditional leader of
Arabic films...
...UAE has played an active role in recent
years, with the government fostering
investments in the infrastructure, and
providing assistance for film and TV
production to nurture a local media
industry
Your Entertainment & Media experts
Digital success is not
about technology.
It’s about applying a
‘digital mindset’ to
build the right
behaviours to be
ever closer to the
customer
Philip Shepherd
Middle East Entertainment & Media Leader
T: +971(0) 4 304 3501
M: +971 (0) 56 676 1857
philip.shepherd@ae.pwc.com
Lubna Kabir
Entertainment & Media Director
T: +971 (0) 2 694 6806
M: +971 (0)50 887 9276
lubna.kabir@ae.pwc.com
About the Outlook
5 year historic &
5 year forecast data
One comparable
online source
of consumer
and advertising
spend
54 countries
13 segments
Middle East & Africa region
includes:
• Saudi Arabia
• Nigeria
• Internet access spending
• Radio
• United Arab Emirates
• South Africa
• Internet advertising
• Egypt
• North Africa
• Kenya
• Rest of Middle East
• TV subscriptions
and license fees
• Out-of-home advertising
• Television advertising
• Filmed entertainment
• Consumer and
educational
book publishing
• Business-to-business
• Video entertainment
• Music
• Consumer magazine
publishing
• Newspaper publishing
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