Global Entertainment and Media Outlook 2018-2022
Expert opinions Vyacheslav Nikolaev Global and Russian markets: Artem Pulikov Key trends and outlooks Mikhail Voshchinsky Vadim Vereshchagin Oleg Tumanov CONTENTSCONTENTS 9 STEADY GROWTH Development trends in Russia's entertainment and media industry
CREATIVE INTELLIGENCE AI: The new business reality
NEW ROUND OF DEVELOPMENT Entertainment and media: Global trends 9 METHODOLOGY Detailed calculation methodology for all segments
9 KEY SEGMENTS Russia’s 2018 entertainment and media outlook
19 Internet access
21 TV advertising
23 Internet advertising
27 Cinema
31 OTT video EXPERT OPINIONS Vyacheslav Nikolaev (13) 35 Video games and e-sports Artem Pulikov (17) Mikhail Voshchinsky (25) 37 Virtual reality (VR) Vadim Vereshchagin (29) Oleg Tumanov (33) NEW ROUND OF DEVELOPMENT
The entertainment and media market is entering a new phase of development. The lines that once separated the entertainment and media, technology and telecoms industries are becoming more and more blurred. Major content producers have become vertically aligned and integrated with distribution platforms that allow them to access end customers more efficiently, and Internet and telecoms giants are starting to create content and build local integrated ecosystems. The distinctions between segments are blurring, such as the distinctions between print and digital; video games and sports; terrestrial, cable and online TV; and social and traditional media.
KEY DRIVERS OF THE NEW ECOSYSTEM
2018 The first year when global revenue from mobile Internet advertising will surpass its traditional equivalent.
3 Media Outlook | 2018
The distinctions between segments are blurring, such as the distinctions between print and digital; video games and sports; terrestrial, cable and online TV; and social and traditional media
IN THE EVOLUTION OF ENTERTAINMENT AND MEDIA, TRADITIONAL BUSINESS MODELS ARE BEING REINVENTED SO THAT COMPANIES CAN TAP INTO NEW REVENUE STREAMS AND CREATE MARKET RELEVANCE AT SCALE.
PwC 4 NEW ROUND OF DEVELOPMENT
Three types of industry development
ENTERTAINMENT AND MEDIA COMPANIES: THREE KEY WAYS TO TRANSFORM
These three strategies are interrelated areas of development for achieving a company’s key goals of robust financial performance and maximum audience coverage. To be successful, companies should focus on all three areas.
5 Media Outlook | 2018
Continuing revenue growth...
…but with stark differences among segments…
...and countries
PwC 6 NEW ROUND OF DEVELOPMENT
7 Media Outlook | 2018
COMPOUND ANNUAL GROWTH RATES BY COUNTRY, 2017-2022
НигерияNigeria 21,0% ЕгипетEgypt 17,1% ИндияIndia 11,6% KeniaКения 10,3% ИндонезияIndonesia 8,8% RussiaРоссия 8,8% ПакистанPakistan 8,8% VietnamВьетнам 8,1% PhilippinesФилиппины 8,1% TurkishТурция 7,9% СаудовскаяSaudi Аравия Arabia 7,6% RomaniaРумыния 7,3% АргентинаArgentina 7,2% ChinaКитай 7,2% UAEОАЭ 7,1% ThailandТайланд 6,5% PeruПеру 6,4% ЮжнаяSouth Африка Africa 6,4% GreeceГреция 6,4% ChileЧили 6,2% ПольшаPoland 6,1% Южная Корея 5,9% SouthМексика Korea 5,7% МалайзияMexico 5,6% ColumbiaКолумбия 5,6% Czech RepublicЧехия 5,4% БразилияBrazil 5,3% ВенгрияHungry 4,6% ИталияItaly 4,3% ПортугалияPortugal 4,3% SwedenШвеция 4,0% АвстралияAustralia 3,8% CanadaКанада 3,7% SingaporeСингапур 3,6% ИспанияSpain 3,5% NetherlandsНидерланды 3,5% USAСША 3,5% ИрландияIreland 3,5% ВеликобританияGreat Brittan 3,2% ИзраильIsrael 3,1% НоваяNew Зеландия Zealand 2,9% ТайваньTaiwan 2,8% SwitzerlandШвейцария 2,8% DenmarkДания 2,7% НорвегияNorway 2,7% BelgiumБельгия 2,6% ФинляндияFinland 2,6% ЯпонияJapan 2,3% ФранцияFrance 2,2% HongГонконг Kong 2,2% АвстрияAustria 2,2% GermanyГермания 2,0%
PwC 8 STEADY GROWTH
In 2017, the entertainment and media industry in Russia continued to show strong growth, with an upward trend expected through 2018 and over the next several years. The positive trend was facilitated by the sustainable trajectory of growth achieved by the Russian economy, for one, and by the 2018 FIFA World Cup, a large-scale sporting event hosted by Russia.
Convergence
The media industry is one of the few in which consumers, tempted by emerging technologies, tend to quickly change their behaviour and preferences
9 Media Outlook | 2018
Innovative technologies and personalisation
THE DATA FROM 2017 SHOW THAT THE SIZE OF RUSSIA’S ENTERTAINMENT AND MEDIA INDUSTRY WAS USD 22BN, EXCEEDING THE 2016 MARKET SIZE BY 11%. WE EXPECT THAT THE MARKET WILL CONTINUE TO GROW AT THIS RATE AND SURPASS USD 24BN IN 2018.
LOOKING FIVE YEARS AHEAD, WE PREDICT THAT THE MEDIA MARKET WILL DEMONSTRATE A CAGR OF 8.8%, WHICH IS TWICE THE GLOBAL RATE, AND THE TOTAL VOLUME OF THE RUSSIAN MEDIA INDUSTRY WILL EXCEED USD 33BN
PwC 10 STEADY GROWTH
USD 6.5bn Internet access will be the leader among all segments, accounting for 30% of the total volume.
11 Media Outlook | 2018
RUSSIA’S ENTERTAINMENT AND MEDIA REVENUE IN 2017 AND 2022 (USD M)
2017
Predictions for 2022
6,549
2,912
2,665
2,268
1,423
1,320
942
652
643
628
264
175
22
10
home
(B2B)
Music
Radio
sports
Books
-
-
Cinema
of
E
business
-
-
OTT OTT video
Magazines Magazines
advertising
to
-
Out
Virtual realityVirtual
Video gamesVideo
TV TV advertising
Internet accessInternet
Internet advertisingInternet Business
PwC 12 STEADY GROWTH
EXPERT OPINION
Telecoms market development vectors
Vyacheslav Nikolaev
“
13 Media Outlook | 2018
From telecoms to entertainment
ANY TOOL MUST BE THE MOST CONVENIENT… WITH AN ATTRACTIVE OFFERING, THE OPERATOR MAY ONLY GAIN A LITTLE, BUT THEY DO GAIN AN ADVANTAGE
The services ecosystem and a personalised approach
PwC 14 CREATIVE INTELLIGENCE
Artificial intelligence (AI) is a new suite of technologies capable of performing tasks that usually require human intelligence, e.g. speech recognition, decision-making or learning. AI is being rapidly adopted as the business reality for many global industries. Its role in the entertainment and media industry is remarkable.
Technology adoption
15 Media Outlook | 2018
Complete automation through Human resources and AI only AI technology
Consumer-centred Optimisation of content Enhancing the customer innovation creation experience
• Music produced by AI • Tracking exercise • Filmmaking based on the (e.g. improved workout Facebook newsfeed performance and developing a workout schedule) • Image gallery made in Google’s facial recognition system • Capabilities of interactive content (e.g. asking customers to fill out • Filmmaking based on Google a short questionnaire after photos viewing a video to rank the quality of a service/product) • Recommendations (e.g. TV, films and music) • Content tracking (e.g. Spotify playlists) • Interactive assistants (e.g. Alexa)
Optimised internal Reduction of repetitive Enhanced and more creative processes tasks solutions
• Automation of customer support • Strengthening sales performance • Automation of credit • Maximising revenue from films management • Maximising sales of content • Predictive technologies for licences analysing customer outflow • Reduced regulatory risks • Media planning and buying • Tracking and grouping comments • Tracking, creating • Video content analytics and distributing newsfeeds • Social media analytics • Creating content tags • Editing content (e.g. film trailers) • Developing sports recaps • Music for films and music libraries produced using AI
PwC 16 KEY SEGMENTS
EXPERT OPINION
Artem Pulikov
“
17 Media Outlook | 2018
Moving up
Apparent symbiosis
PwC 18 KEY SEGMENTS
INTERNET ACCESS
Most Russian operators cite similar trends: the steady growth in the mobile data used, increased activity in the segment of products based on fixed-mobile convergence (FMC) and the growth of the fixed broadband access and pay TV segments.
19 Media Outlook | 2018
Networks and upgrades
5G infrastructure
Mobile Internet revenue will grow strongly in line with increased data usage.
PwC 20 KEY SEGMENTS
TV ADVERTISING
The Russian economy is closely linked to the performance of the TV advertising market, and a recession in 2015 saw a 13.7% decline in expenditures on TV advertising. However, this segment has proved resilient and is again experiencing strong rates of growth.
21 Media Outlook | 2018
2018 FIFA World Cup in Russia
National Advertising Alliance
12.3% Projected growth in TV advertising for 2018, due in particular to the impact of Russia hosting the FIFA World Cup.
PwC 22 KEY SEGMENTS
INTERNET ADVERTISING
Russia’s Internet advertising market is the largest in Central and Eastern Europe, totalling USD 2.7bn in 2017. It is one of the fastest-growing markets and is expected to increase at a CAGR of 15% through 2022, when revenues will hit USD 5.4bn.
23 Media Outlook | 2018
Mobile advertising
Display advertising
PwC 24 KEY SEGMENTS
EXPERT OPINION
Internet versus TV
Mikhail Voshchinsky “
25 Media Outlook | 2018
Partnerships, emerging technology and content
Big data, big opportunities
ONE DATA SOURCE IS NOT ENOUGH TO RUN AN EFFECTIVE ADVERTISING CAMPAIGN.
PwC 26 KEY SEGMENTS
CINEMA
The Russian cinema sector remains heavily dependent on Hollywood for revenue. Of the top 20 films at the box office in 2017, 16 were American. In 2016, the market saw a similar situation, with an even larger number of Hollywood films (18) in the top 20.
WE EXPECT THAT TOTAL CINEMA REVENUE WILL GROW TO USD 1.2BN BY 2022, UP FROM USD 942M IN 2017.
USD USD bn 942m 1.2 2017 2022
27 Media Outlook | 2018
Russian tastes
PwC 28 KEY SEGMENTS
EXPERT OPINION
“It is the story that counts”
THE VIEWER GOES TO THE CINEMA FOR AN EMOTIONAL EXPERIENCE THAT ONLY THE CINEMA CAN PROVIDE; IT SHOULD BE A HUMAN INTEREST STORY, NOT A RETELLING OF AN EVENT
29 Media Outlook | 2018
Vadim Vereshchagin
The Central Partnership film “ production company was established in 1996. It is part of the Gazprom-Media Group and it is an exclusive distributor of Hollywood Paramount Pictures and Lionsgate/ Summit Entertainment films in Russia and the CIS. The company owns one of Russia’s biggest copyright libraries. In 2017, Central Partnership films grossed over RUB 70bn at the box office, with domestic projects accounting for 30% of its revenue.
Crossing borders: E-sports in cinema
PwC 30 KEY SEGMENTS
OTT VIDEO
In Russia, the growth of the OTT video market has been limited since the issue of piracy remains unsolved.
31 Media Outlook | 2018
USD 175m Russia’s OTT video market in 2017
PwC 32 KEY SEGMENTS
EXPERT OPINION
Oleg Tumanov “
33 Media Outlook | 2018
Different screens, different methods of monetisation
Tell me who you are, and I will tell you what you consume
PwC 34 KEY SEGMENTS
VIDEO GAMES AND E-SPORTS
In 2017, video games and e-sports grossed up to USD 2.2bn in box office revenues in the Russian market, an increase of USD 1bn from 2013. In 2022, the market is expected to be worth USD 4.8bn, with an average annual growth rate of 16.3%.
Traditional video games
USD 10m Aggregate revenue of e-sports in Russia in 2017
35 Media Outlook | 2018
é
PwC 36 KEY SEGMENTS
VIRTUAL REALITY (VR)
Consumer interest in VR video and VR gaming will ensure that the Russian VR segment grows at a CAGR of 51.3% over the next five years. By 2022, the total revenue for the VR market is expected to reach USD 178m. It is interesting to note that by 2022, video market revenue will exceed gaming revenue, despite the fact that gaming has a head-start on video.
37 Media Outlook | 2018
VR gadgets are expected 7m to be in use in Russia by 2022.
By 2022, 7m VR gadgets will be in use in Russia, with 3.3m of them representing the latest and most user-friendly portable headsets.
PwC 38 METHODOLOGY
Detailed calculation methodology for all segments
The Global Entertainment and Media Outlook 2018-2022 provides insights into the industry’s main trends and figures. The market falls into 15 main segments that are analysed in detail in this report.
• • • • • • • • • • •
• • • •
39 Media Outlook | 2018
PwC 40 METHODOLOGY
SEGMENT DEFINITIONS
The final figures provided in charts and graphs may differ from the mathematically determined final values due to rounding up.
Internet advertising This segment comprises spending by advertisers media and email) are also included under this either through a wired Internet connection or through category, but video advertising, searches and mobile devices. The revenue relates to the provision classifieds are excluded. Classified ads are Internet of digital services and includes spending on advertisements containing a list of products or advertising. Internet advertising, in general, refers to services by categories. An advertiser pays a fee to online TV advertising, ads in newspapers, consumer display an ad or a list of products/services around a and professional magazines and directories, and specific vertical such as automotive, recruiting or real online radio advertising (for North America only). estate. Video Internet advertising comprises revenue Wired Internet advertising falls into the following from in-stream video advertising (e.g. pre-rolls, mid- categories: paid searches, banners/displays, and rolls and post-rolls) only. It does not include in- classified and video formats. The total advertising stream banner-display advertising or out-of-stream figures eliminate any double counting. Search video advertising. Online video advertising generates Internet advertising involves placing ads on web revenue both from advertising placed by traditional pages that show the results of search engine queries broadcasting companies and from ads on websites (e.g. Google AdWords). Banner Internet advertising such as YouTube. Mobile Internet advertising generates revenue from traditional ads placed on comprises all advertising delivered to mobile gadgets web pages in many forms, including banner ads. through formats designed for specific devices. This Other Internet advertising formats (e.g. affiliates, rich revenue is considered digital.
Pay TV This segment comprises consumer spending on The revenue comprises the sell-through and rental of basic and premium TV subscriptions, and consumer physical home videos, and subscription and spending on public TV licence fees (when applicable) transactional revenues from electronic home video. and home video. Consumer spending on basic and The revenue from physical home videos is split premium subscriptions includes Video on Demand between rentals and the sell-through of video (VOD) and pay per view (PPV) accessed from cable formats. It is formed from consumer spending on operators, satellite providers, telephone companies films, TV programmes and other video content on and other multichannel distributors. For subscription DVDs and Blu-ray media. The revenue is formed TV household estimates, only data on primary TV from all consumer spending on products, both retail subscriptions by household were considered. Home and online. Rental revenue comprises spending on video includes both electronic and physical home rentals of videos at video stores and other retail video of films, TV programmes and other video outlets, along with DVDs or Blu-ray discs distributed content. by mail services.
41 Media Outlook | 2018
OTT video This segment comprises consumer spending on OTT with conventional pay TV services (e.g. Sky’s Go or video services and video streaming services (e.g. Comcast’s Xfinity). Netflix). TVOD services (such as iTunes) deliver filmed OTT video revenue comprises revenue from stand- entertainment content through the open Internet and alone services such as Netflix, whose filmed do not require a subscription. SVOD services (such entertainment content is accessed through a as Netflix) are also delivered over the Internet but broadband or wireless Internet connection and is require a subscription. viewable on a PC, TV, tablet, smartphone or other device that bypasses TV subscription providers. These services are split between transactional video on demand (TVOD) and subscription video on demand (SVOD). Note that this category also includes revenue from stand-alone operator OTT services, such as MTG's Viaplay or Sky's Now, neither of which require a subscription to a core TV service but do exclude revenue from "TV Everywhere" operator packages that bundle OTT
Internet access This segment comprises spending on access to the dongles and data cards. App downloads refer to any Internet and is split into two categories: mobile applications that are downloaded from an app store Internet and fixed broadband. Fixed broadband either for free or for a fee, and that are installed on Internet access includes both wired and wireless connected devices such as smartphones, tablets connections. The revenue from providing such and smart TVs. access comes from subscriptions to residential or business Internet access services delivered to a home, office or any other location. Access is provided by cable, MMDS modem, xDSL, FTTx, WiMAX, proprietary wireless broadband, Ethernet, power line communications and satellite broadband technologies. Mobile Internet comprises Internet access over the medium of cellular air interfaces, generally through a 2.5G network or higher. This covers Internet access through mobile devices and connected devices that use embedded modems,
Video games and e-sports This segment generates revenue from consumer dynamic advertising inserted into or displayed spending on video-game software and related alongside the game in an app or browser during services (not hardware or devices) for both gameplay. traditional and social/casual gaming, as well as from E-sports comprises consumer and advertiser advertising through video games. The revenue spending on e-sports, which are defined as includes spending by both consumers and organised video-gaming competitions, both online advertisers on e-sports. and offline, from one-off events to organised Traditional gaming comprises revenues associated leagues. with playing games on PCs and gaming consoles Streaming advertising is advertising revenue spent (both TV-connected and portable). This includes on e-sports events streamed on websites (e.g. sales of physical (disc-based) games at retail stores Twitch). This is distinct from the advertising revenue (both brick-and-mortar and online retailers), sales of associated with the general streaming of video digital games (including Steam, Good Old Games games from such platforms (e.g. Minecraft videos), and Origin for PCs, as well as the PlayStation Store, which is not covered. Xbox Games Store and Nintendo eShop for consoles), additional downloadable content (DLC) Sponsorship revenue is the revenue from the and subscription services. Online/micro-transaction sponsorship of organised e-sports competitions, revenue also includes spending associated with free- (e.g. Snickers’ sponsorship of the ELEAGUE) and of to-play massively multiplayer online games (MMOs) individual teams. but does not include spending on social/casual Consumer ticket sales is revenue from consumers browser-based games, which are included in the spent on tickets to physically attend e-sports events. social/casual gaming component. Consumer contribution is revenue that consumers Social/casual gaming revenues include consumer spend on compendiums for e-sports events, or battle spending on and in app-based games on tablets and passes (e.g. the International Battle Pass) for smartphones, and browser games aimed at a casual virtually attending e-sports events. Spending must audience (e.g. Ruzzle and Zynga’s Words with count towards an organised e-sports event, and is Friends). This includes revenues associated with the therefore distinct from regular spending on games purchase of social/casual gaming apps, subscription such as League Of Legends. services for social/casual games and the purchase Media rights revenue is revenue from spending by of virtual items within social/casual games. This also broadcasters and streaming companies for the rights includes revenues associated with “hardcore” mobile to show e-sports events. games (e.g. Infinity Blade 2). Excluded from the definition are the sale of Advertising revenue from video games includes only merchandise at events, and e-sports betting static advertising in video games. It does not include revenue.
PwC 42 METHODOLOGY
SEGMENT DEFINITIONS
The final figures provided in charts and graphs may differ from the mathematically determined final values due to rounding up.
TV advertising This segment comprises all TV advertising revenue, traditional, core and over-the-air TV channels. including broadcast and online. Broadcast television covers all advertising revenue generated by free-to- air networks (terrestrial) and pay TV operators (multichannel). Online TV advertising consists of in- stream ads around TV content delivered by such websites. This includes revenues from pre-roll, mid- roll and post-roll ads around TV content distributed by broadcaster-owned websites. Multichannel includes non-core network advertising revenue generated through pay TV networks (e.g. cable, digital terrestrial television [DTT], Internet Protocol Television [IPTV] or satellite), including revenue from free-to-air spin-off digital channels launched by core terrestrial networks. This revenue is considered non- digital. Terrestrial covers advertising sold on
Business-to-business This segment comprises business-to-business advertising and circulation revenue from magazines media, which comprises business information, aimed at a professional audience. This segment directory advertising, trade magazines, professional comprises the spending on advertising in both books and trade shows. Business information traditional print and digital online magazines, either includes spending on business-focused data and directly through a magazine website or discretely intelligence, and it is split into three separate through digital editions of magazines that are categories: financial, marketing and industry. distributed directly to a connected device such as a Financial includes securities and economic credit PC or tablet. Circulation revenue comprises data; marketing includes sales and survey research, spending by readers on printed trade magazines, mailing lists and demographic databases; and including single copies direct from retail outlets or industry includes data and content covering market through subscriptions. Professional books are those share information and competitor intelligence. This targeted at professional users (e.g. legal publishing). revenue is both digital and non-digital, and is This segment comprises the revenue generated by considered consumer spending. Directory sales across both print (including audio) and digital advertising covers the spending on advertising in editions. Trade shows take into account revenue both print and digital editions of directories such as from spending by businesses on exhibitions at trade the Yellow Pages. This revenue is both digital and shows. It does not include any sponsorship of non-digital, and it is considered spending on events. advertising. Trade magazines comprise both
Cinema This segment comprises cinema revenue (including revenue is non-digital, and it is from both consumer box office and advertising). Cinema revenue and advertising spending. comprises consumer spending at the box office for theatrical motion pictures and the spending on advertising at the cinema, including on-screen advertisements prior to films. It does not include any revenue from merchandise or concessions. This
Books This segment comprises revenue generated from the bought by schools, government agencies and sale of consumer books (i.e. bought by consumers students for educational use. Professional books are for personal use), educational books (i.e. bought by those targeted at professional users (e.g. legal consumers or institutions for educational use) and publishing). professional books (i.e. targeted at professional users, such as legal publishing), including both print and electronic editions. Educational books are those
43 Media Outlook | 2018
Music This segment comprises consumer spending on included along with sponsorship revenues. This music, including both physical and digital recordings, comprises non-digital revenue that is generated from as well as live music played at concerts. This also both consumer and advertising spending. includes revenue from sponsoring live music events. Revenue from advertising on radio stations and radio The recorded music component comprises both networks is tracked as the net of agency physical and digital recordings. All consumer commissions, production costs and discounts. spending is measured at the retail level, which can be substantially higher than the wholesale or trade value revenues sometimes reported. Streaming comprises revenue from subscription and advertiser- supported streaming services. Note that service providers do not break this revenue down into consumer and advertising components. Downloads includes revenues from any licenced recorded music downloaded through app stores or licenced services (e.g. iTunes). Mobile music refers to the purchase of ringtones and ring-back tones only. Revenues from music services that are delivered wirelessly to connected devices are considered digital. The total number of music units sold at the retail level, both physical and digital, includes single tracks, albums and music videos. For live music, consumer spending on tickets is
Magazines This segment comprises revenue from both digitally. Magazines published under contract consumer-focused and trade magazines (i.e. (customer magazines/contract or custom publishing) magazines aimed at a professional audience) are included within the print advertising section. The generated from both circulation and advertising. licencing of merchandise is not included in this Circulation revenue for both consumer and trade segment. magazines comprises spending by readers on either single sales from retail outlets or through subscriptions in print, as well as through downloads of individual copies or subscriptions delivered
Newspapers This segment comprises revenue from both digital, and is generated by both consumers and circulation (consumer spending on newspapers) and spending on advertising. advertising in newspapers, and it takes both physical print editions and digital editions into consideration. It includes revenue from spending on advertising in free dailies. This revenue is both digital and non-
Out-of-home ads The out-of-home (OOH) advertising market consists digital. of spending on advertisements in out-of-home media (both traditional and digital). OOH comprises the total spending by advertisers on all formats of out-of- home media, and it is split between the physical and
Virtual reality (VR) Virtual reality (VR) refers to a head-mounted system VR app revenue comprises consumer spending on that immerses a wearer in a stereoscopic, wholly apps for VR headsets beyond those (usually free) virtual environment, or a scene where they can look apps provided by platform holders for VR gaming around and optionally move and interact. This and VR video. segment comprises consumer spending on VR videos, VR games and VR apps. VR video revenue comprises revenue from subscription top-ups, streaming fees, electronic sell- through (EST) and physical purchases. VR gaming comprises revenue from free-to- play/micro-transactions, subscription top-ups, digital transactions and physical purchases.
PwC 44 APPENDIX
CAGR BY COUNTRY AND SEGMENT, 2017-2022
TV advertising Russia US Germany China India Indonesia Japan
Segment revenue, 2017 2,912 70,100 5,369 13,502 4,033 4,615 13,207 (USD m)
Segment revenue, 2022 3,908 74,862 6,013 14,032 6,858 7,096 14,480 (USD m)
CAGR (%) 6.1% 1.3% 2.3% 0.8% 11.2% 9% 1.9%
B2B
Segment revenue, 2017 1,320 91,119 17,451 9,346 1,215 520 8,335 (USD m)
Segment revenue, 2022 1,495 106,761 19,374 11,382 1,770 715 8,885 (USD m)
CAGR (%) 2.5% 3.2% 2.1% 4% 7.3% 6.6% 1.3%
Cinema
Segment revenue, 2017 942 11,203 1,276 8,945 1,785 335 2,049 (USD m)
Segment revenue, 2022 1,207 12,274 1,351 14,183 2,802 472 2,250 (USD m)
CAGR (%) 5.1% 1.8% 1.2% 9.7% 9.4% 7.1% 1.9%
Books
Segment revenue, 2017 1,423 36,827 10,324 14,917 2,382 440 11,086 (USD m)
Segment revenue, 2022 1,517 40,177 10,374 17,674 3,144 454 11,513 (USD m)
CAGR (%) 1.3% 1.8% 0.1% 3.5% 5.7% 0.6% 0.8%
45 Media Outlook | 2018
Music Russia US Germany China India Indonesia Japan
Segment revenue, 2017 643 18,726 4,091 581 344 207 6,132 (USD m)
Segment revenue, 2022 834 25,317 4,401 1,128 763 462 6,229 (USD m)
CAGR (%) 5.3% 6.2% 1.5% 14.2% 17.3% 17.5% 0.3%
Magazines
Segment revenue, 2017 652 30,206 5,903 17,511 258 232 7,910 (USD m)
Segment revenue, 2022 747 28,876 5,431 17,578 283 231 7,488 (USD m)
CAGR (%) 2.8% -0.9% -1.7% 0.1% 1.8% -0.1% -1.1%
Newspapers
Segment revenue, 2017 537 28,955 8,751 10,688 3,893 2,836 14,506 (USD m)
Segment revenue, 2022 407 24,958 8,387 10,031 4,838 2,684 12,375 (USD m)
CAGR (%) -5.4% -2.9% -0.8% -1.3% 4.4% -1.1% -3.1%
Out-of-home ads
Segment revenue, 2017 628 9,645 1,187 6,385 416 279 6,525 (USD m)
Segment revenue, 2022 645 11,533 1,357 9,391 589 396 6,952 (USD m)
CAGR (%) 0.5% 3.6% 2.7% 8% 7.2% 7.3% 1.3%
PwC 46 APPENDIX
CAGR BY COUNTRY AND SEGMENT, 2017-2022
Internet advertising Russia US Germany China India Indonesia Japan
Segment revenue, 2017 2,665 88,007 7,864 45,723 958 1,480 12,094 (USD m)
Segment revenue, 2022 5,353 127,387 10,077 80,004 2,029 3,715 15,156 (USD m)
CAGR (%) 15% 7.7% 5.1% 11.8% 16.2% 20.2% 4.6%
Pay TV
Segment revenue, 2017 1,534 98,918 5,840 20,731 9,263 1,013 4,937 (USD m)
Segment revenue, 2022 1,753 92,682 6,533 30,483 15,141 1,331 5,168 (USD m)
CAGR (%) 2.7% -1.3% 2.3% 8% 10.3% 5.6% 0.9%
OTT video
Segment revenue, 2017 175 20,055 958 2,443 297 30 2,401 (USD m)
Segment revenue, 2022 331 30,597 1,495 5,191 823 132 3,878 (USD m)
CAGR (%) 13.6% 8.8% 9.3% 16.3% 22.6% 34.2% 10.1%
Video games
Segment revenue, 2017 2,268 23,269 4,670 19,867 609 455 13,576 (USD m)
Segment revenue, 2022 4,832 28,804 6,075 31,437 2,702 1,004 17,082 (USD m)
CAGR (%) 16.3% 4.4% 5.4% 9.6% 34.7% 17.2% 4,7%
47 Media Outlook | 2018
E-sports Russia US Germany China India Indonesia Japan
Segment revenue, 2017 10 184 55 117 2 3 11 (USD m)
Segment revenue, 2022 32 467 113 338 14 15 42 (USD m)
CAGR (%) 25.5% 20.5% 15.3% 23.7% 56.6% 41.2% 31.2%
Radio
Segment revenue, 2017 264 21,739 3,865 2,346 428 115 1,192 (USD m)
Segment revenue, 2022 292 23,424 4,235 2,776 785 140 1,141 (USD m)
CAGR (%) 2% 1.5% 1.8% 3.4% 12.9% 4.1% -0.9%
VR
Segment revenue, 2017 22 1,451 213 728 0 0 407 (USD m)
Segment revenue, 2022 178 7,194 1,003 4,587 0 0 2,859 (USD m)
CAGR (%) 51.3% 37.7% 36.3% 44.5% ------47.7%
Internet access
Segment revenue, 2017 6,549 146,268 17,635 68,115 4,901 2,871 59,698 (USD m)
Segment revenue, 2022 10,846 196,862 20,110 92,470 10,852 4,708 69,753 (USD m)
CAGR (%) 10.6% 6.1% 2.7% 6.3% 17.2% 10.4% 3.2%
PwC 48 CONTACTS
You are welcome to discuss the results of the survey with us. PwC partners
Yury Pukha Partner, Advisory Leader, Telecommunications, Utilities, Communication and Entertainment (TUCE) Email: [email protected] Evgeny Klimenko Partner, Assurance Technology, Media and Telecommunications [email protected]
Natalia Vozianova Partner, TLS Technology, Media and Telecommunications [email protected]
Authors
Grigory Sidorov Director, Technology, Media and Telecommunications [email protected]
Vladimir Lapin Senior Manager, Technology, Media and Telecommunications [email protected]
Claudia Chistova Business Development Manager [email protected]
Viktoria Nosachenko Senior Marketing Specialist [email protected] Contributors: Global Entertainment and Media Outlook online data source
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www.pwc.ru/en/publications/media-outlook-2018
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