The collaborative future: reshaping for consumer relevance and engagement

(1)

Global

entertainment

& media

outlook

Marcel Fenez

Global Leader,

Entertainment

& Media

The collaborative future:

reshaping for consumer

relevance and engagement

Lisbon, 30 September 2011

(2)

PwC

Internet access spending

Internet advertising

TV subscriptions and license fees

Television advertising

Recorded music

Filmed entertainment

Video games

Consumer magazine publishing

Newspaper publishing

Radio

Out-of-home advertising

Consumer and educational book

publishing

Business-to-business

Agenda

Slide 2 30 Setembro 2011 Global Entertainment & Media Outlook 2011-2015

(3)

2010: the E&M

industry emerges

from recession

(4)

PwC

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

Recorded Music Business-to-Business Newspaper Publishing Consumer Magazine Publishing Consumer and Educational Book Publishing Filmed Entertainment† Out-of-Home Advertising Total Radio Video Games TV Subscriptions Internet Access TV Advertising Internet Advertising

Actual growth Projected growth

2010 growth: stronger than expected

Note:1 does not include cinema advertising

1

(5)

(6)

PwC

Entertainment and media growth rates

2011 – 2015 (Globally 5.7% CAGR)

(7)

Entertainment and media growth rates

2011 – 2015

US 4.6% France 4.0% Germany 3.4% UK 3.7% Japan 2.5%

Mature: 3.9%

(8)

PwC

Entertainment and media growth rates

2011 – 2015

US 4.6% France 4.0% Germany 3.4% UK 3.7% Japan 2.5% China 11.6% Russia 11.7% India 13.0% Brazil 11.4%

Mature: 3.9%

BRIC: 11.7%

(9)

Entertainment and media growth rates

2011 – 2015

US 4.6% France 4.0% Germany 3.4% UK 3.7% Japan 2.5% China 11.6% Russia 11.7% India 13.0% Brazil 11.4% Turkey 13.2% MENA 16.1% South Africa 9.2% Indonesia 11.9% Pakistan 23.7% Vietnam 17.3% Columbia 11.2% Mexico 8.7%

(10)

PwC

Growth by segment

-4

-2

0

2

4

6

8

10

12

14

16 Recorded Music

Newspaper Publishing

Consumer and Educational Book Publishing

Consumer Magazine Publishing

Radio

Business-to-Business

Out-of-Home

Filmed Entertainment

TV Advertising

TV Subscriptions

Video Games

Internet Access

Internet Advertising

% CAGR 2011-2015

Portugal

Global

(11)

Broadband penetration

Mature vs. BRIC vs. Golden 8

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

(12)

PwC

Mobile penetration

(Mobile Internet/Wireless Subs)

Mature vs. BRIC vs. Golden 8

0% 10% 20% 30% 40% 50% 60% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Mature Portugal Golden 8 BRIC

(13)

Smart devices drive spending

on E&M content

0

200

400

600

800 1000

1200

1400

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Unit

sales

-

million

s

(14)

(15)

Advertising revenues to 2015

0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2010 2011 2012 2013 2014 2015

U

S$

m

illions

Mature BRIC Golden 8 Portugal

3.9%

12.8%

8.9%

2.9%

(16)

PwC

Advertising revenue growth to 2015

0 2 4 6 8 10 12 14

Portugal

Mature

Golden 8

BRIC

%CAGR 2011-2015

(17)

Digital advertising global share

2010 and 2015

Digital;

15.9%

Non-digital;

84.1%

Digital;

22.5%

Non-digital;

77.5%

2010

2015

(18)

PwC

Digital vs. non-digital advertising

Mature vs. BRIC vs. Golden 8

18.4% 26.2% 11.0% 17.3% 3.2% 6.2% - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2010 2015 2010 2015 2010 2015 Mature BRIC G8

Mature vs. BRIC vs. G8 Advertising Digital vs. Non Digital

Non-digital Digital

(19)

Global advertising spending by segment

Other 9% Out-of-Home 6% Consumer Magazines - print 6% Radio 7% Digital advertising 16% Newspapers - print 18% Television - excl. mobile and online 38% Other 6% Out-of-Home 6% _Consumer Magazines - print 6% Radio 6% Digital advertising 23% Newspapers - print 15% Television - excl. mobile and online 38%

2010

2015

By platform

(20)

PwC

Global advertising spending by segment

2010

2015

By ownership

Other 11% Out-of-home 6% Consumer magazines 6% Radio 7% Internet advertising 12% Newspapers 20% Television 38% Other 9% Out-of-home 6% Consumer magazines 6% Radio 6% Internet advertising 16% Newspapers 17% Television 40% Slide 20 30 Setembro 2011 Global Entertainment & Media Outlook 2011-2015

(21)

Portugal advertising spending by segment

2010

2015

Television 52% Consumer magazines 17% Out-of-home 10% Newspapers 7% Directories and trade magazines 5% Radio 5% Internet advertising 3% Other 1% Television 54% Consumer magazines 15% Out-of-home 10% Newspapers 7% Internet advertising 5% Radio 4% Directories and trade magazines 3% Other 2%

(22)

Consumer/end-user

spending

(23)

Global consumer spending growth

-2

0

2

4

6

8

10 V

ide

o

g

a

m

e

s

T

V

su

b

scri

p

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n

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a

n

d

li

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se

fe

e

s

Fil

m

e

d

e

n

te

rtain

m

e

n

t

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u

sine

ss

-to

-b

u

sine

ss

Rad

io

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su

m

e

r

a

n

d

e

d

u

ca

tio

n

a

l b

o

ks

New

sp

a

p

e

rs

Con

su

m

e

r

m

a

g

a

z

ine

s

Reco

rde

d

m

u

sic

%

C

A

GR

201

1 -2015

(24)

PwC

Digital consumer spending

Mature

2010

2015

Digital

6%

Non-digital

94%

Digital

11%

Non-digital

89%

(25)

Digital consumer spending

BRIC

2010

2015

Digital

10%

Non-digital

90%

Digital

16%

Non-digital

84%

(26)

PwC

Digital consumer spending

Golden 8

2010

2015

Digital

4%

Non-digital

96%

Digital

6%

Non-digital

94%

(27)

Global consumer spending in 2015

Digital vs non-digital

0

50

100

150

200

250

300

Radio Recorded Music Consumer Magazines Newspapers Video Games Filmed Entertainment Consumer and Educational Books Business-to-Business TV Subscriptions and License Fees

(28)

PwC

Consumer spending in Portugal -

growth to 2015

-4 -2 0 2 4 6 8 10

Consumer magazines

Consumer and educational books

Newspapers

Business-to-business

Filmed entertainment

Radio

Video games

TV subscriptions

%CAGR 2011-2015

Recorded music

(29)

Digital Share of total E&M revenues

Portugal vs. other markets

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Ireland Germany France Mature UK Global BRIC Portugal Spain Golden 8

Digital share of E&M revenues

2010

2015

(30)

The collaborative

future...

... reshaping for

consumer relevance

and engagement

(31)

1. The digitally

empowered consumer

2. The involved

advertiser

3. Collaboration:

the route to

competitive advantage

(32)

A „golden age‟ for the digitally

empowered consumer

(33)

What will people pay for?

Leads to sustainable, profitable

and engaged relationships with

the consumer

Convenience

Experience

Quality

Participation

Privilege

Advantages outweigh

attractiveness of free

and pirated content

(34)

PwC

Streaming

Ownership

How do people access?

Storage

in the cloud

Storage on device

(35)

The involved advertiser

(36)

PwC

What does an „involved advertiser‟

look for?

• Engagement with ‘digital natives’ in their own space, e.g. social

media.

• Personalised interaction.

• Compelling content and intensity of experience.

• Cross-platform reach – new devices and channels.

• Verifiable evidence of consumer engagement.

(37)

Greater involvement is being

achieved by...

• Social media creates social intelligence.

• TV and Video Games’ strength comes from cross-platform

integration.

• Location-based marketing and addressable advertising.

• Digital billboards and smartphones offer interactive experiences.

• Advertisers are collaborating, experimenting and innovating.

(38)

Collaboration: the route

to competitive advantage

(39)

Operating model for the digital future:

the Collaborative Digital Enterprise

“An enterprise that is

dynamic, interconnected,

and continuously engaged

with its entire customer,

employee and supplier

ecosystem , through

technology”

(40)

PwC

The route to success in the emerging

digital environment

Data

Demand

Digital

(41)

Imperatives for future success

Data mining

Data security

Future-proofing content

End-to-end digital workflow

Digital talent management

(42)

PwC

Questions

The complete picture:

www.pwc.com/outlook

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