Pulling the future forward: The entertainment and media industry reconfigures amid recovery Five-year projections of consumer and advertising spending data across 14 segments and 53 territories
PwC Global Entertainment & Media Outlook 2020-2024 outlook shows that the COVID-19 fundamentally shifted consumer behaviours and accelerated the digital transformation that would otherwise have taken longer. Digitalization, one of the most important factors shaping all industries, has been amplified due to social distancing and travel restrictions. The entertainment and media world became more distance-focused, virtual, online streaming-based, personal and home-based in 2020.
Now in its 21st year, this year’s Outlook takes into account the effects of COVID-19 on the entertainment and media industry. As in previous years, we’ve taken a deep dive into our wealth of detailed data, forecasts and analyses, and created new perspectives and insights to help you shape your strategies for years ahead.
Total book revenue in Turkey is expected to reach USD 386 million in 2020. Over the next five years, revenues are expected to contract and have a CAGR (compound annual growth rate) of -1%. While the decline of printed book publishing continues, the percentage represented by e-books in total industry revenue continues to rise as a result of digitalization. E-book revenues are projected have at a CAGR of 11% over the next five years.
B2B revenues in Turkey are expected to fall to USD 374.4 million in 2020 (2019: USD 475.6 million) due to pandemic restrictions. With the effects of recovery, revenues are expected to have a CAGR of 3.9% over the next five years.
As out-of-home activities were greatly restricted due to COVID-19, cinemas were closed and the release dates of big movies were postponed. In 2020, revenues in Turkish cinema industry were expected to fall by 51.6% compared to 2019. Over the next five years global revenue is projected to recover, and box office revenues in Turkey are expected to grow, with a CAGR of 2.6%.
Data consumption in Turkey was expected to reach 35.7 trillion MB in 2020, and 61% of the data is consumed via smart phones and tablets. In the next five years, the expected 19.3% CAGR for data consumption is predicted to include other devices in addition to smartphones and tablets.
In Turkey, internet access was expected to generate revenue of USD 5,107 million in 2020. 82% of this revenue will be generated from mobile internet access. Mobile internet access revenues and fixed broadband access revenues are expected to have CAGRs of 7.7% and 2%, respectively, over the next five years.
More than half of the internet adversing revenues in Turkey, which had an estimated volume of USD 600 million in 2020, comes from mobile internet advertising. Mobile internet advertising revenues are expected to grow, with a CAGR of 8% over the next five years.
Total revenues in the Turkish music, radio and podcast industry were expected to fall to USD 141.5 million in 2020 (2019: USD 184 million), and to have a CAGR of 5.8% over the estimation period, rising to USD 244.1 million in 2024. Podcast advertising revenue is expected have a CAGR of 27.2% over the next five years and to represent an increasing percentage of total revenues.
Newspaper and consumer magazine revenues continue to fall due to declining circulation. Revenues were expected to fall by 12% in 2020 and CAGR is expected to contract, with a CAGR of -3.8% over the next five years.
Out of home market revenue was expected to be USD 82.8 million in 2020 and rise to USD 145 million by 2024. Digital revenues are expected to have a CAGR of 11.2% over the next five years and to represent an increased percentage of total revenues.
OTT revenues are expected to have a CAGR of 9.7% and rise to USD 283.5 million in 2024.
Subscription TV revenues in Turkey are expected to reach USD 402 million with a 96% share of 2020 revenues, and have a CAGR of 3.8% over the estimation period.
TV advertising revenues were expected to reach USD 704.4 million in 2020, and 83% of revenues are expected to come from traditional TV advertising. Revenue from digital TV advertising is expected to grow with the increasing pace of digital transformation in TV broadcasting. TV advertising revenues are expected to reach USD 873.1 million in 2024, and 6% of revenues are expected to come from online revenue, 17% from multi-channel revenue and 77% from traditional TV advertising.
Revenues from social media video games were expected to be USD 482.2 million in 2020 and constitute 73% of total Turkish video games and e-sports revenues. This category is expected to have a CAGR of 7.2% and rise to USD 620.3 million in 2024.
Generating a great deal of revenue in global economies, e-sport revenues in Turkey have been rising since 2019. E-sport revenues are expected to have a CAGR of 21% over the next five years and to generate revenue of USD 8.6 million.
Consumer habits can take a lifetime to learn – but just a lockdown to lose. The COVID-19 pandemic has accelerated and amplified ongoing shifts in consumers’ behaviour, pulling forward digital disruption and forcing industry tipping points that wouldn’t have been reached for many years. This year’s report will be released in early October.
Understanding where consumers and advertisers are spending their time and money in the entertainment and media industry can help inform many important business decisions.
PwC’s Global Entertainment & Media Outlook provides a single comparable source of consumer and advertiser spending data and analysis. Regardless of how you influence business decisions, the Outlook can help you understand industry trends so you can capitalise on new opportunities.
Entertainment and Media Industry Leader, PwC Turkey
Tel: +90 212 326 6086