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Perspectives from the Global Entertainment and Media Outlook 2017–2021 Curtain Up! User Experience Takes Center Stage

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Perspectives from the Global Entertainment and Media Outlook 2017–2021 Curtain Up! User Experience Takes Center Stage Perspectives from the Global Entertainment and Media Outlook 2017–2021 Curtain up! User experience takes center stage www.pwc.com/outlook PwcOutlook_C1-21-fin3-050417.indd 1 5/5/17 10:54 AM Use and permissions Use of data in this publication Permission to cite About PwC Articles in this publication are drawn No part of this publication may be PwC helps organizations and individuals from data in the Global entertainment excerpted, reproduced, stored in a create the value they’re looking for. and media outlook 2017–2021, a retrieval system, or distributed or We’re a network of firms in 157 countries comprehensive source of consumer and transmitted in any form or by any with more than 223,000 people who advertising spend data available via means — including electronic, are committed to delivering quality in subscription at www.pwc.com/outlook. mechanical, photocopying, recording, assurance, tax and advisory services. Tell PwC continually seeks to update the or scanning — without the prior us what matters to you and find out more online Outlook data; therefore, please written permission of PwC. by visiting us at www.pwc.com note that the data in the articles in Requests should be submitted in writing this publication may not be aligned to Gary Rosen at [email protected] with the data found online. The Global Supplier to the Outlook outlining the excerpts you wish to use, entertainment and media outlook Ovum, a provider of business intelligence along with a draft copy of the full report 2017–2021 is the most up-to-date and strategic services to the global that the excerpts will appear in. Provision source of consumer and advertising telecoms and media markets (which is a of this information is necessary for every spending data. trading division of Informa Telecoms and citation request to enable PwC to assess Media Ltd.) This document is provided by PwC the context in which the excerpts are www.ovum.com for general guidance only and does being presented. not constitute the provision of legal Without limiting the foregoing, excerpts advice, accounting services, investment from the publication may be used only © 2017 PwC. All rights reserved. PwC advice, or professional consulting of for background market illustration, refers to the PwC network and/or one any kind. The information provided should not be the sole source of 2017– or more of its member firms, each of herein should not be used as a substitute 2021 information, and must not form which is also a separate legal entity. for consultation with professional tax, the majority of sourced information. Please see www.pwc.com/structure accounting, legal, or other competent for further details. advisors. Before making any decision or taking any action, you should consult Global entertainment and media a professional advisor who has been outlook is a trademark owned by provided with all pertinent facts PricewaterhouseCoopers LLP. relevant to your particular situation. The information is provided as is, with no assurance or guarantee of completeness, accuracy, or timeliness of the information and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Content from the articles in this publication must not be excerpted, used, or presented in any portion that would render it misleading in any manner or that fails to provide sufficient context. Cover photograph: Jay Blakesburg / UpperCut Images / Getty Images Photograph pages 8–9: Flashpop / Iconica / Getty Images PwcOutlook_C1-21-fin1-plusChanges.indd 2 5/2/17 12:00 PM Perspectives from the Global Entertainment and Media Outlook 2017–2021 Curtain up! User experience takes center stage PwcOutlook_C1-21-fin1.indd 1 5/1/17 2:51 PM Global entertainment and media outlook country contacts Global Denmark Japan Deborah Bothun Leif Ulbaek Jensen Yoshihisa Chiyoda [email protected] [email protected] [email protected] Argentina Egypt Kenya Ariel Vidan Jayant Bhargava Anthony Murage [email protected] [email protected] [email protected] Australia Finland Korea Megan Brownlow Harri Valkonen Bumtak Lee [email protected] [email protected] [email protected] Austria France Malaysia Hannes Orthofer Richard Béjot Irvin Menezes [email protected] [email protected] [email protected] Belgium Germany Mexico Kurt Cappoen Werner Ballhaus Luis Roberto Martinez [email protected] [email protected] [email protected] Brazil Greece Middle East/North Africa Estela Vieira Panagiotis Zisis Jayant Bhargava [email protected] [email protected] [email protected] Canada Hungary Netherlands John Simcoe Peter Sere Ennèl van Eeden [email protected] [email protected] [email protected] Chile India New Zealand Ariel Waltuch Frank D’Souza Keren Blakey [email protected] [email protected] [email protected] China & Hong Kong Indonesia Nigeria Wilson Chow Mohammad Chowdhury Osere Alakhume [email protected] [email protected] [email protected] Colombia Ireland Norway Jorge Mario Añez Amy Ball Eivind Nilsen [email protected] [email protected] [email protected] Czech Republic Israel Pakistan Tomas Basta Amir Gleit Syed Shabbar Zaidi [email protected] [email protected] [email protected] Italy Peru Maria Teresa Capobianco Bernardo Duce [email protected] [email protected] Philippines Thailand Mary Jade Roxas Tina Hammond [email protected] [email protected] Poland Turkey Pawel Wesolowski Murat Colakoglu [email protected] [email protected] Portugal UAE Goncalo Mendes Jayant Bhargava [email protected] [email protected] Romania United Kingdom Florin Deaconescu Phil Stokes [email protected] [email protected] Russia United States Yury Pukha Deborah Bothun [email protected] [email protected] Saudi Arabia Stefanie Kane Jayant Bhargava [email protected] [email protected] Christopher Vollmer Singapore [email protected] Charlotte Hsu Venezuela [email protected] Manuel Pereyra South Africa [email protected] Vicky Myburgh Vietnam [email protected] Ong Tiong Hooi Spain [email protected] Jorge Planes Trillo [email protected] Sweden Nicklas Kullberg [email protected] Switzerland Patrick Balkanyi [email protected] Taiwan Damian Gilhawley [email protected] PwcOutlook_C1-21-fin1.indd 3 5/1/17 2:51 PM About this report Each year we take a deep dive into the And these imperatives assume a larger findings of our Global entertainment importance because, as we document, and media outlook. Whether you’re a the E&M industry is confronting several newcomer to the Outlook or a longtime challenges to continued top-line growth. subscriber to our data, you should regard To learn more about how the findings in this document as an annual report for this report can apply to your business, businesses that invest and operate in or how your company can subscribe to the entertainment and media (E&M) the full body of Outlook research, please industry and in related sectors, such connect directly with your local PwC as technology, communications, retail, team. Alternatively, you can reach out to and e-commerce. either of us, and we’ll put you in touch As you read through this report, we’re with our local leaders in your geography. Deborah Bothun confident you will come away with We look forward to hearing from and actionable business insights based on working with you. the trends we’re identifying and charting across the 17 defined segments and 54 countries our research covers. The Best regards, authors of this report connect the dots Deborah Bothun between the business challenges our Global Entertainment & Media Leader clients face today, whether they are [email protected] coping with value-chain disruption or mapping an M&A strategy, and the highly Brad Silver detailed segment and country data that Global Technology, Media, and emerges from the research. Telecommunications Leader [email protected] The intensive debate, discussion, and Brad Silver analysis we engage in each year yields important insights. For 2017, we see an important set of takeaways that should inform and shape your strategy. Companies that wish to capture value amid shifting consumer preferences and business model disruptions must focus on an increasingly prominent source of competitive advantage: user experience. They must harness technology and data to attract, retain, and engage users — and convert them into devoted fans. PwcOutlook_C1-21-fin1.indd 4 5/1/17 2:51 PM Contents 06 Methodology and definitions 07 Contributors 10 Curtain up! Outlook perspective 22 Business models As distribution splinters, adaptation is the name of the game 26 Value chains Across E&M, companies chart a direct-to-consumer path 29 Technological change Driving incremental growth through innovation 32 Content strategy Adapting to penetrate technological and cultural filters 35 Deals Strong tailwinds 38 Regulation Market contrasts, net neutrality, and privacy Index PwcOutlook_C1-21-fin2-050417.indd 5 5/4/17 11:12 AM Methodology and definitions Historical data collection Forecasting methods Definitions All forecasts have been built starting All forecasts are prepared as part of Do you want access to consumer with the collection of historical data a collaborative, integrated process and advertising spending data at from a variety of sources. A baseline of involving both quantitative and the click of a button? The Global accurate and comprehensive historical qualitative analysis.
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