Report forecasts major shifts in global media industry

 JournalismPakistan.com |  Published last year

LONDON—The latest PwC Global Entertainment & Media Outlook 2023–2027 report has highlighted significant changes and challenges within the media industry, projecting a substantial shift in revenue streams and growth strategies.

According to the report, total global entertainment and media revenue grew by 5.4 percent in 2022, reaching $2.32 trillion. However, this marks a deceleration from the previous year's growth of 10.6 percent. The forecast predicts that by 2027, the growth rate will slow further to 2.8 percent annually, lagging behind the projected 3.1 percent overall economic growth rate.

Advertising Ascendancy: Advertising is set to surpass consumer spending as the largest revenue category in the media industry by 2025. Internet advertising, which grew by 8.1 percent in 2022, is expected to be a significant driver, with total global advertising revenue projected to reach $952.6 billion by 2027.

Consumer Spending Slowdown: The report notes a decline in consumer spending on entertainment and media, attributed to inflation, pandemic aftereffects, and geopolitical uncertainties. Consumer spending is forecasted to grow at just 2.4 percent annually, totaling $903.2 billion by 2027​.

Digital Transformation: As media products become more digital, production and distribution costs are falling, but competition among digital content providers is intensifying. This competition, coupled with the widespread adoption of digital platforms, is reshaping the media landscape​.

AI Integration: Companies are increasingly looking at generative AI to boost productivity and creativity. This technology is expected to play a crucial role in driving growth and efficiency within the media sector​.

Implications for the Media Industry:
The shift towards advertising revenue and digital content consumption presents both challenges and opportunities for media companies. Firms must adapt by leveraging technology, such as AI, to enhance their offerings and improve operational efficiency. Additionally, the industry needs to navigate the changing consumer behavior and economic pressures to sustain growth.