A report by PwC indicates that the future of publishing lies in the hands of millennials.
The Global Entertainment and Media Outlook 2016-2020 reveals Canadian media and entertainment will grow at an annual rate of 3.5 percent between 2016 and 2020.
However, this growth represents a slowdown from last year’s 5 percent growth in industry revenues and will lag behind overall economic growth over the next five years. Slowdowns in certain areas such as newspapers and print publishing as well as cinema will contribute to this.
What differentiates failing segments of this sector from those that will succeed is being able to make use of technology through data analytics and customer insights. Streaming, mobile technology and internet advertising will experience substantial growth.
Furthermore, millennials, who use technology more than any other age group, will inform content production over the next few years and will continue to be the primary drivers of growth in Canadian entertainment and media.
“Millennials want the best content delivered to them in the easiest way possible whether it be on their phone, computer, or streaming service. Media companies need to be agile and tailor their offerings to meet the rapidly evolving demands,” said Anita McOuat, Partner with Entertainment and Media at PwC Canada in a statement sent to MobileSyrup.
“While media companies still need to produce appealing and innovative content, they also need to focus on how millennials will interact with it, creating data that can be used to shape the creation of yet more content,” she continued.
Streaming will also continue to define the Canadian television landscape. OTT (over-the-top) streaming will experience a compound annual growth rate (CAGR) of 10.3 percent. According to prior reports by MobileSyrup, Netflix is still the preferred streaming platform among Canadians with carrier options like Shomi and Crave winning only small factions of consumer preference.
“Canadians now have access to multiple OTT or TV on demand services, each with their own exclusive content, and the same can be said of the various music streaming services. It can be difficult to get all your favourite content in one place. There is an opportunity for technology firms to create a one-stop-shop by aggregating all content, making it easier and more flexible for Canadians,” adds McOuat in a statement.
In addition to these major trends, several others will emerge or continue to grow over the next five years. Among these include the rise of internet advertising revenues by approximately 9.8 percent by 2020 and a rise of music streaming by 27.3 percent by 2020. On the other hand, music downloads will experience a drop of 10 percent by 2020.
PwC concluded that the next five years will see several key areas of disruption, including a focus on younger demographics, local content, bundled streaming content and the centralization of technology to business growth.
Overall, the value of Canadian entertainment and media will grow from $43.8 billion US ($56.1 billion CAD) to $50 billion US ($64 billion CAD)