2023-10-10-GP_Bullhound-2023年Q2数字媒体报告_28页_2mb

Digital Media Sector Summary

The takeaways for Q2 2023

• The renaissance of video game movies and series: New trends and high success rates for adaptations, including The Super Mario Bros. and The Last of Us, leading to high investments.

• AI in content creation: The use of AI tools for managing content creation, offering benefits like personalisation, automation and predictive analysis.

• AR and VR games: Growing popularity of immersive gaming, with Meta and Apple launching new headsets, but challenges like high costs and user safety remain.

• Digital news:Following Meta launching Threads, digital advertising faces increased competition, and social media is replacing traditional media as the source of news.

Q2 2023 digital media transaction trends

• Notable deals: A high volume of M&A and private financing activities in entertainment and gaming sectors.

• IPO activity: Several digital media companies achieved strong performance post-IPO.

• Index performance: Indices show modest recovery, with Asian gaming and diversified media experiencing some declines.

GP Bullhound’s digital media indices

• Pricing trends: Relatively stable valuation levels observed across indices with little change in total addressable market multiples.

• Profitability: Music, video, and photos recorded higher margins, though revenue growth slowed in recent quarters.

Gaming:

• Video game movies and series are experiencing a surge in popularity and investment, following successes like The Super Mario Bros. Movie and The Last of Us Series, which showcased sophisticated narratives.

• Growing appeal of AR and VR games, including titles like Assassin's Creed Nexus, but high costs and data security issues hinder wider adoption.

• AI is being used in media and entertainment to automate tasks such as writing, editing, and managing analytics, supporting hyper-personalisation and more efficient operations.

• Transition to digital content delivery continues with competition intensifying between media platforms, though profitability remains low for traditional players.

Digital media industry insights:

• The Q2 sector display modest growth overall, with evolving markets facing challenges including market saturation and uncertain funding prospects.

• Notable figures include CEO commentary focusing on generative AI and immersive tech impacts on entertainment.

• Public comparables show low EBITDA margins with volatile stock performance across the sector.