December 2, 2022

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PwC report: Record consumer and ad spend in media and entertainment category continues

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Australia’s media and entertainment sector experienced record growth over the past year to hit $45.6 billion in consumer spending in 2021, the highest annual increase recorded by PwC over the last 21 years.

The 21st annual edition of the PwC Entertainment and Media Outlook 2022 report found consumer spending across the sector bucked early pandemic declines to increase by 6.23 per cent year-on-year to $45.6 billion in 2021. Of this, $31.59bn was spent on Internet access, a figure that includes $4.37bn in spend on subscription TV, $3.62bn on games and $2bn on books.  

By the end of this year, annual household spending into the entertainment and media sector is expected to increase by approximately $510 per year compared to 2019.

Advertising dollars in media and entertainment followed suit, increasing by 20.2 per cent to hit $19.67 billion in 2021. PwC noted a particular spike in the second half of 2021 as brands looked to capitalise on more positive market sentiment. In total, this brought the value of Australia’s media and entertainment industry to $65.3bn.

Ad spend growth is expected to continue accelerating this year, lifting 8.33 per cent to $21.46bn in 2022. PwC attributed this growth to early year gains from election spending, the return of categories such as travel, and ongoing digital-led growth.

“This growth is expected to however slow in the forecast period, flattening in 2025 and 2026, ultimately resulting in a compound annual growth rate [CAGR] of 4.4 per cent, and a total of $24.4 billion to 2026,” the report stated.

Overall, PwC forecasts the sector will reach total value of $79.9bn by 2026. Within this, consumer spending is expected to be worth $55.5bn, putting an extra $7.2bn on the table in the coming three years.



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