Is E&M industry poised to growth?
🎧💡 #10 Macro & Business Insights
Hi all, and welcome back to The Macro & Business Insights!
In this research I’ll touch the follow questions and doubts:
How E&M industry is reacting to post pandemic period and what forecasts tell us for the future.
What could be the key drivers due even to the pandemic?
Important to know how advertising could grow behind the evolution of E&M industry.
Why streaming is becoming always more important and what we could expect by it.
In 2022, the US$2.5tn E&M global industry is expected to grow 7.3%, and it should notch a 4.6% CAGR through 2026.
It is set to grow at a 6.6% CAGR through 2026 on the way to becoming a US$1tn market. The growth is fed largely by digital.
Moving towards the 2026 the US$2.9tn industry will be more digital, more mobile, more pitched at media that attract the young, more evenly distributed around the globe and more dependent on advertising in all its forms.
And this attracts surely more digital advertising then non-digital as you can see with the chart below.
Even the advertising, which fell nearly 7% in 2020, grew a stunning 22.6% in 2021 - and represented 32.2% of total entertainment and media industry revenues.
By 2026, PwC expect US internet advertising revenue to be only US$8.4bn short of total global non-digital advertising revenue.
The US E&M market is the largest market in the world. In 2020, E&M revenues for the U.S. exceeded $500 billion and is projected to grow by a CAGR of about 6% through the end of the decade.
Streaming is now at the top of every film industry executive’s distribution strategy. And competition is fierce. Today, there are more than 200 streaming services in the U.S. and no two are alike.
By 2024, the firm estimates streaming revenues will reach $38 billion.
As we look ahead to 2023 and beyond, the E&M industry will strive to maintain its balance in a landscape riven by fault lines and fractures.
But the overall growth path is both clear and strong.
Over time, the increasing availability of compelling E&M content, services and experiences will attract a greater share of consumers’ attention.
The data clearly shows that the mix of revenues and spending is changing rapidly.
Behavior consumers is changing in E&M industry and Streaming & Video gaming are poised to do well.
Business strategies are continuing to be reshaped so that companies can meet the consumers of 2026 where they will be living, hanging out and shopping.
Given the expected increase in time spent in 3D experiences, we are likely to see greater investment in e-commerce in gaming environments and the metaverse, with brands such as Nike and Gucci not only offering branded virtual items for purchase but also offering the opportunity to order physical goods.
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Disclosure
This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. This material has been prepared for informational purposes only. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.