This week we’ve been keeping our ear to the ground on the latest goings on in the Entertainment, Media and Sports sector. Read on to explore how these insights are impacting our clients.
What’s the background?
We heard direct from sources about the latest PwC strategy and global entertainment and media outlook for 2024 report, covering how the industry is expected to grow.
The outlook, which covers 11 revenue segments across 53 countries and territories, finds that global Entertainment & Media revenues are projected to hit $3.4 trillion in 2028, growing at a 3.9% compound annual growth rate (CAGR).
Most notably, advertising revenue is set to hit $1 trillion in 2026 and is projected to account for more than half (55%) of total E&M industry revenue growth over the next five years.
Within this report however, some important stats highlight that areas of growth and decline are changing rapidly to celebrities and personalities need to stay ahead of the curve to be successful.
1. Short-form video content
From an industry standpoint popularity of short-video content is continuing to increase.
With the future of TikTok uncertain in the US, rumours that Meta are about to spin out Reels from Instagram into its own platform are rife.
Social media platforms continue to pop up all over the place, in between concerns over data sharing, as influencers and personalities look for the right home for their voice as well as their audience.
Risk that audiences become spread over multiple networks and social media apps diluting reach and engagement which could impact ad partnership revenues
Opportunity to build trust and be a first-mover on to new networks that gain public traction quickly
2. Ad revenues are growing
Production of media is getting cheaper, and ad-based relationships are the biggest area of growth for the industry over the next few year – so the role of influencer is alive and well.
This is also coupled with streaming services creating cheaper ad-based subscriptions
YouTube has managed double digit growth for ad revenue due to short form content being produced from traditional media, e.g. newspapers are publishing short-form videos via YouTube to audiences of millions, creating clear opportunities for celebrities and influencers to be a part of the action.
3. Content consumption preferences are changing
Away from social media, consumers are rebelling against fully digital and shifting towards re-engaging in the real world.
In entertainment this means that they’re looking to augment their digital online touch-points with offline IRL physical experiences and other media.
For celebrities and influences this means they want to see their favourite people away from social media and also on TV, in films, through books, meet-and-greet, radio, talk-shows and more.
Many entertainers have experienced opportunities in doing live Q&A sessions, corporate gigs, charging for appearances at events, or being the face of an interactive experience.
4. Brand IP is hot
In the ‘mergers and acquisitions’ world there has been an increase in Brand IP being purchased as a way to drive the experiential craving of consumers.
Well known brands in one area are purchasing the brand IP in something completely unrelated to access new audiences and associate their brands together.
For instance, car brands find themselves in the metaverse through online gaming, exposing brands to new audiences. Similarly celebrities and influencers can license their own brands, which particularly in an AI world is an increasingly popular way to control and monetise their personal brand.
5. Growth markets are international
New audiences are opening up across the world in developing markets as social media networks are becoming increasingly split by geography in terms of popularity and trust.
In the 1990s this might have been in the likes of western pop bands becoming popular in eastern markets, in much the same way that K-Pop has become a global viral phenomenon in the 2020s.
Opportunities for celebrities and influencers can be that accessing these markets elevates their status away from domestic perception, increasing their brand worth in those markets.
6. Sports is changing rapidly
Consumer behaviour for a new generation is shifting the sports experience with live matches increasingly being combined with technology such as seat-back screens in stadia and multi-media experiences such as half-time shows and spectacles.
As audiences demand more there could be opportunities for celebrities and influencers to cross-over to the world of sport and develop experiences that satisfy attendees seeking entertainment, as well as hardcore sports fanatics.
Government policies are also impacting sport’s relationship with gambling sponsors, etc. so sports personalities in particular need to be careful of how their personal brand is aligned to some of these organisations and whether that could be reputation damaging.
Sports are also trying to diversify their business models and increase the entertainment side. Expect there to be tie-ups and brand opportunities here too.
