Global entertainment and media spending is projected to climb from $1.74 trillion last year to $2.23 trillion by 2019, according to a new report released Wednesday by PricewaterhouseCooper.
In PwC’s latest five-year media-industry outlook, revenues from digital media is expected to have an 11 percent compound annual growth rate. But the total revenues from digital won’t catch up to traditional media’s by 2019 in part due to the resilience of events like live concerts and movie theater box office.
Here are some more highlights of the study’s other projections:
- The U.S. market, the world’s biggest, will see $723 billion in spending in 2019, up from $568 billion in 2014.
- TV advertising is seen passing $81 billion in 2019, from $69 billion last year, with subscriptions and license fees rising from $99 billion to $105 billion.
- Cord-cutting still appears to be a small-scale trend that is having a limited impact on the market. The overall growth in total subscription TV households is forecast to continue to 2019, but the decrease in subscription-TV penetration points to the success of so-called over-the-top alternatives via the Internet and outside traditional TV distribution systems.
- Online video appears to be serving a growing niche of “cord-severers,” a younger generation of TV viewers that does not plan to take a traditional TV subscription, instead opting to receive their paid-for video content only via the Internet.
- Filmed entertainment revenue is projected to climb to $35 billion, from $28.2 million.
- Book publishing will be slightly up, as will magazines. Newspaper publishing is the only sector to show negative growth, with revenue seen dipping to $27.9 billion from $32 billion in 2014.
- U.S. advertising revenues are forecast to rise at a compound annual growth rate of 3.5 percent, increasing from $193.8 billion in 2014 to $230 billion in 2019.
- U.S. Internet and video-game advertising are both seen growing at 11.1 percent a year and overtaking broadcast TV advertising in 2018.
- Mobile and video are gaining share from all segments, with mobile Internet advertising expected to surge at a 25.6 percent rate by 2019.
- Mobile advertising passed display Internet ads in 2014 for the first time, and will supplant paid search in the U.S. in 2016 as the leading Internet advertising category.
- Video ad spending in the U.S. is projected to rise at an annual rate of 15 percent.