Turbulent times in media and entertainment… This how the presentation of PWC Global entertainment & media outlook starts.
Nevetheless, trends show that besides economical crisis, there are opportunities for media and entertnaiment, in a content production perspective.
Portuguese players are diversified and consumer are getting more demanding, by the day, while globally, business models have to change; partnerships between media organizations can be a way to succeed in this highly competitive and evolving market.
Collaborative future: reshaping for consumer relevance and engagement. How?
In 2010 industry emerged from recession and looking into 2015 will may have 5.7% global growing rate. Neverthelless, we have to think about markets, since regions in each market have many different characteristics and behaviors. Mature markets growth represent 3.9%, bric markets 11.7%, and the “golden8” 12.7% (including middle east countries, some asian countries, and latin american countries like mexico).
In Portugal, decreasing markets include consumer magazine publishing and recorded music. Fastest growth in media and entertainment is represented by Internet access and Internet advertising.
Smart devices drive spending on E&M content is rapidly growing, mostly on smartphones, then tablets and after e-readers, and we are still talking about non-mass products, there is, when tablet prices (good tablets) come down, this growth will look quite different. By 2015, global digital advertising will be around 23%, being mostly search. But regarding ad spend by platform, radio will have 6% , print 21% (newspapers and magazines) and TV 38%. As for different categories of digital spending, TV goes for 40% and radio keeps 6%.
As for the Portuguese market, TV is currently 52%, magazines 17%, out-of-home advertising 10%, press 7%, trade magazines 5%, radio 5%, internet advertising 3%.
Regarding consumer growth spending, recorded music as a negative growth and radio is the fifth in this list, that as video games leading the way. Nevertheless, although people are actually consuming digital content, they are not paying for it – from 6% to 11% in 2015 in mature markets, 10% to 16% in Bric markets.
And finally… Talking about the collaborative future, to regain relevance (relevant for me to pay for it) and engagement (as I can measure it and change it in to revenues).
The digital empowered consumer has a different behavior than traditional consumer. People have huge contradictions regarding digital. Free content is available everywhere, since although being digital natives they still have doubts about sloud storage and some like to buy items they really love. Regarding content and piracy, how to get consumer to pay? Convenience (mobile devices)
Experience (live events in music – people pay for the concert and rip the music… The concert has the added experience) Quality
Participation (part of the content creation process)
Privilege (some content is not avaliable in every IP, leading to piracy). And how is advertising reacting?
Engaging with digital natives in their own environment; with personalized interaction; having compeling content and intensity of experience; with cross-platform reach and verifiable evidence of consumer engagement.
Achieving involvent throgh social media and adressable advertising. Collaboration will be the route to have a competitive advantadge (Hulu is an example of players who compete with each other for content and decided to collaborate to get into digital audiences).
Achieving success is highly dependable on data mining; ensuring consumer that data is secure (there is, companies will use it the right way and not send rubish to consumers); future-proofing content; end-to-end digital workflow; digital talent management.
It’s a case to say: be there or be square!
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