2021-10-07-普华永道-2021-2025年澳大利亚娱乐与媒体展望（英）_72页_5mb

Australian Entertainment & Media Outlook Summary

Core Content Overview

The 20th edition of PwC's Australian Entertainment & Media Outlook provides an in-depth analysis of the sector's transformation driven by the global pandemic and digital disruption. The report highlights five major power shifts reshaping the industry and explores how consumers interact with content in a post-COVID world.

Key Findings

1. Market Impact of the Pandemic

• In 2020, the pandemic caused the sharpest contraction in Australian entertainment and media revenues in the report's history.
• Total advertising spend dropped by -8.0% to A$15.4 billion, and consumer spend fell by -1.9% to A$42.5 billion.
• Filmed Entertainment saw a -41.0% revenue decline, while Out-of-Home (OOH) dropped by -39.0%.
• Internet Advertising was one of the few winners, with a 3.3% increase to A$9.3 billion.

2. Power Shifts Reshaping the Industry

Macro Shifts: Digital Disruption

• The migration to digital consumption has accelerated due to the pandemic, leading to sustained growth in streaming and gaming.
• SVOD (Streaming Video on Demand) and BVOD (Broadcast Video on Demand) have grown significantly, while cinema saw a -67.4% revenue drop.
• Gaming emerged as a bright spot, with 7.2% revenue growth in 2020 and expected to grow at a 7.5% CAGR through 2025.

Control Shifts: Consumer Empowerment

• Consumers now have greater control over how they spend their time and money on content.
• Advertisers face challenges due to increased ad skipping, opt-out behaviors, and privacy concerns.
• Apple's iOS 14 introduced enhanced privacy controls, leading to a decline in data tracking and affecting platforms reliant on user data.

Creative Shifts: Creator-Centric Models

• The democratisation of content via platforms like TikTok, Twitch, and YouTube has empowered creators.
• User-Generated Content (UGC) is growing rapidly, offering low-budget, high-impact content that appeals to younger audiences.
• Traditional players are facing pressure as creators gain more control, agency, and revenue through direct monetisation.

Location Shifts: Anytime, Anywhere Access

• 5G technology has enabled high-quality, seamless content experiences across various locations.
• Consumers now expect personalised, on-demand access to content from any device, at any time.
• The lounge room has evolved into a multi-platform hub for content, including SVOD, BVOD, and gaming.

Regulatory Shifts: Increased Scrutiny

• Australia has become a testing ground for regulatory reforms, including:
  • Digital platforms inquiry
  • News media bargaining code
  • Customer loyalty schemes review
  • Digital advertising services inquiry
• The news media bargaining code was a major focus, with Google and Facebook facing public challenges over its implications.
• Regulatory focus on privacy, market power, and fairness is expected to continue.

Content Consumption in a Post-COVID World

1. Content Appetite and Elasticity

• Content appetite is defined as the capacity and desire to consume specific content.
• It is influenced by four key factors:
  • Preferences and interests shaped by genre
  • Connection to content
  • Referral to specific content
  • Access context (how, when, where, and why content is accessed)

2. Types of Content Consumption

• Routine consumption: habitual, time and place consistent, often for similar reasons.
• Spontaneous consumption: low concentration, driven by immediate needs.
• Planned consumption: conscious decision, often with 30+ minutes dedicated to content.

3. New Behaviors as the "New Normal"

• The pandemic has led to new consumption habits that are likely to persist.
• Content is now used as a companion for other activities and as a means of emotional balance.

Conclusion

• Despite the volatility of 2020, the industry outlook remains robust.
• The shift to digital is driving growth and innovation across multiple sectors.
• Adaptation and strategic evolution are essential for industry players to thrive.
• Consumer-centric strategies, data-driven insights, and experimentation are key to success in a rapidly changing landscape.

Future Outlook

• The four power shifts (macro, control, creative, location) will continue to transform the industry.
• Streaming services are expected to grow significantly, with SVOD projected to grow at a 20.4% CAGR.
• NFTs and direct-to-consumer models are opening new revenue streams for creators.
• Regulatory and social changes will continue to influence the media ecosystem in the coming years.

Strategic Recommendations

• Companies must understand and adapt to changing consumer behaviors.
• Customer consultation, data analysis, and test-and-learn approaches are crucial for success in the evolving market.
• Embracing digital innovation and creator empowerment will be key to sustaining growth and relevance.