Global Entertainment & Media Outlook

Transcription

1 pwc.com/ca/emoutlook Global Entertainment & Media Outlook The end of the digital beginning Association of Canadian Advertisers August 27, 2012 Michael Paterson & Aurélie Olives

2 The end of the digital beginning Mobile advertising coming to your device Digital is business as usual Location based advertising Mobile distribution of content pwc.com/ca/emoutlook The value of social networks Slide 2

3 What we said 5 years ago about will see a broad scale roll out of IPTV and VOD will steal revenue from Pay-Per-View Sports rights and sponsorship deals will become more lucrative. Value of online and mobile rights will also rise significantly. Mobile television will be available in 2008 and become a $100m market by 2011 as new technology enables faster download speeds The Internet will constitute 19 % of advertising in 2012 Slide 3

4 2011 Actual Vs Forecasted Segments with Strong Growth Internet Advertising % Growth 22.8% Vs 18.2% Internet Access 17.5% Vs. 12.1% TV Advertising TV Subscriptions Radio Out-of-Home Advertising Actual Growth Projected Growth 0% 5% 10% 15% 20% 25% Slide 4

5 2011 Actual Vs Forecasted Segments with Weak Growth % Growth Filmed Entertainment Video Games Consumer and Educational Book Publishing -3.5% Vs 1.7% Consumer Magazine Publishing Newspaper Publishing Recorded Music -3.0% Vs. 0.6% Actual Growth Projected Growth -8% -6% -4% -2% 0% 2% 4% 6% Slide 5

6 Entertainment and media growth rates Canada 6.5% UK 3.1% US 5.2% Germany 2.7% Russia 10.1% China 12.0% France 3.4% Japan 2.8% Brazil 10.6% India 14.3% Mature: 4.1% BRIC: 11.8% Slide 6

7 Poll Question What will be the fastest growing segment over next five years? a) Out of home advertising b) Television Subscriptions c) Television advertising d) Video Games Spending e) Filmed Entertainment Slide 7

8 ...and the answer is Television Subscriptions +8.6% Out-of-Home Advertising +6.0% Video Game Spending +5.3% Television Advertising +5.4% Filmed Entertainment +2.5% Text emoutlook and your question to or Tweet #EMOutlook Slide 8

9 Money Makers: Advertising Segments Internet Advertising Television Advertising +15.7% Out of Home Advertising + 5.4% Radio Advertising +6.0% +4.3% Online Newspaper Advertising % Slide 9

10 Global advertising spending segment 2011 Global advertising CAGR to 2016: 6.4% Internet Advertising 18% Internet Advertising 27% Television 36% Television 36% Other 10% Out-of-Home 6% Consumer Magazines 6% 2016 Other 7% Radio 6% Out-ofHome 6% Newspapers 18% Consumer Magazines 5% Radio 5% Newspapers 14% Segment data here includes online/mobile advertising in the segments and excludes it from the Internet Advertising total Slide 10

11 Canadian advertising spending by segment Canada 2011 Internet advertising 22% Canadian advertising CAGR to 2016: 6.6% Television advertising 28% Canada 2016 Television advertising 27% Internet advertising 33% Others 10% Newspapers 18% Out-of-home 4% Consumer magazine 5% Newspapers 13% Others 8% Radio 11% Radio 13% Out-of-home 4% Consumer magazine 4% Segment data here includes online/mobile advertising in the segments and excludes it from the Internet Advertising total Slide 11

12 Money Makers: Consumer Segments Mobile TV +38% Over-the-top Streaming +18% Recorded Digital Music +12.8% ebooks +46% Satellite Radio +12% Slide 12

13 Digital spending drives global growth Digital is defined as: % $ million % 18% % 61% 68% Non-digital 2012 Digital online and mobile Internet advertising mobile TV subscriptions digital music electronic home video online and wireless video games digital consumer magazine circulation spending digital newspaper circulation spending digital trade magazine circulation spending electronic consumer, educational, and professional books satellite radio subscriptions broadband and mobile Internet access

14 Canada- Digital spending will grow at a CAGR of 13.7% from ,000 60,000 $ million 50,000 36% 40,000 29% 15% 30,000 85% 71% 64% 20,000 10, Non-digital 2012 Digital

15 Key Trends Social Mobile Local Slide 15

16 Social Social Mobile Local Slide 16

17 Social Mobile Local Unit Sale of Smart Devices M 65M 355M 88M 330M 940M ebooks ebooks Tablets Smartphones Tablets Mobile Smartphones Slide 17

18 Social Mobile Mobile Local Internet access spending & advertising Mobile is still an underutilized advertising medium given the time people spend with the mobile devices on uses other than calling. Mobile internet advertising Mobile internet access in Canada $500 $5,000 $400 $4,000 $300 $3,000 $200 $2,000 $100 $1,000 $0 $ Slide 18

19 Local Location-Based Marketing Social Mobile Local Slide 19

20 The Entertainment & Media Value Chain Slide 20

21 Integrating digital across the business -Key Priorities Cost optimisation and process integration Rights and royalty optimisation Metadata modelling Back catalogue consolidation and commercialisation Digital content and publishing integration Talent... Slide 21

22 Poll Question What will be your biggest challenge to monetize digital content or earn digital advertising revenue in next five years? a) Internal skills, resources or systems not adequate b) Consumers believe they should pay less or not pay for digitally distributed content c) Piracy d) Finding the right business model(s) e) The general economy Slide 22

23 The raw materials - talent and innovation The proportion of E&M CEOs who told us talent constraints have caused them to cancel or delay a key strategic initiative in the past year: Text emoutlook and your question to or Tweet #EMOutlook Slide 23

24 The Millennials challenge Talent and innovation...set free by leaders who understand behavior

25 Time for Questions Slide 25