Australian entertainment and media – At a glance
Review of 2014
Total Australian entertainment and media spending grew by 3.3 percent in 2014, compared to a growth of 6.2 percent globally and 8.8 percent in Asia-Pacific . Consumer spending continued to grow in 2014, with a growth of 3.8 percent on 2013, which was consistent with our forecast. In large part, this was due to good performances by the interactive games sector, consumer and educational books (especially from digital revenue streams) and internet access (especially mobile data).
The advertising market continued to grow in 2014, growing by 2.4 percent on 2013, which was below our forecast of 3.3 percent. However, these revenues are spread over many players and channels. Internet advertising again experienced the most growth, increasing by a healthy 13.7 percent.
The next five years
PwC expects Australia’s total entertainment and media market to grow at a 4.2 percent compound annual growth rate from $35.4 billion in 2014, to reach $43.4 billion in 2019. Consumer spending continues to dominate the entertainment and media market and is expected to grow to $27.1 billion by 2019, a compound annual growth rate of 3.8 percent. We expect interactive games to be the fastest growing consumer sector, with an 8.7 percent compound annual growth rate and internet access to remain the largest sector, reaching $13.4 billion by 2019.
Advertising spending is expected to reach $16.4 billion by 2019, a compound annual growth rate of 4.8 percent. By 2019, internet advertising will clearly dominate the advertising sector, reaching $8.2 billion or 50 percent of the market.