Global entertainment and media outlook 2015 - 2019

Digital growth in New Zealand’s entertainment and media industry continues to offset a flattening growth rate on traditional entertainment and media content, according to PwC’s Global entertainment and media outlook 2015-2019. Spending on digital content is forecast to continue to grow at 10 per cent year-on-year to 2019, while spending on non-digital content will increase by just 0.13 per cent year-on-year, an improvement on last year’s forecasts which predicted an annual decline in non-digital content by an average half a per cent to 2018.

PwC’s Digital Strategy and Data Leader Greg Doone says, “For consumers it’s all about content experiences. If digital is a simpler way of getting the content they will gravitate towards that. Given the wide variations in consumer tastes for content, the challenge for entertainment and media companies is to blend traditional intuitive approaches with data insights and to maximise the value of the experiences they offer. 

Advertising growth is primarily digital, driven by mobile, and a fact underlined by internet advertising’s position as one of the fastest-growing segments of advertising at an average of 11.1 per cent year-on-year through to 2019, overtaking TV advertising as the biggest share of advertising in 2014. 

PwC’s outlook forecasts the total entertainment and media industry in New Zealand will grow at an average annual rate of 4.0 per cent to 2019, compared to global growth of 5.1 per cent. Over 39 per cent of all advertising revenues and 16.5 per cent of consumer revenues will be digitally sourced by 2019. Looking across all segments in New Zealand to 2019, overall advertising revenues—will rise at a rate of 2.2 per cent year on year— less than consumer spending at a growth rate of 2.9 per cent year-on-year.

Underlying the trends in entertainment and media spending detailed in the Outlook is the migration by New Zealand consumers to new ways of consuming content. One of the clearest shifts is in TV and video consumption, with consumers increasingly demanding high-quality original programming in a flexible, on-demand manner across numerous devices—thus enabling ‘binge viewing’ and greater convenience. 

“It’s increasingly clear that New Zealanders see no significant divide between digital and traditional media: what they want is more flexibility, freedom and convenience in when and how they consume their preferred content. Consumers will call the shots more as they seek content experiences that are personally relevant to them,” says Mr Doone.

NB: Update to Internet advertising segment

Please be advised, there was an error in the Internet advertising segment of PwC’s Entertainment and Media Outlook’s findings for New Zealand.

In our release from 4 June, we had incorrectly stated the 2014 internet advertising revenue reached $435 million in 2014 and was due to reach $737 million by 2019. The correct figure for 2014 for this segment is $589 million and will reach $996 million by 2019 and figures have been updated and are now correct on this page.

The correct breakdown for this segment for 2014 is as follows:

  • Total Display $125.07m
  • Total Classified $138.83m
  • Total Search & Directories $310.86m
  • Total Social Media $2.43m
  • Total Mobile $12.21m

The figures and our forecast for this segment has been updated in the Outlook online. In the Outlook online, these have been classified slightly differently as per display internet advertising comprises revenues from traditional ads placed on web pages in many forms, including banner ads. Other Internet advertising formats (affiliates, rich media, email) are also included under this category, but video advertising, search and classifieds are excluded.


Beyond digital: What's happening in New Zealand's entertainment and media industry?

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Greg Doone

Greg Doone

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