Advertising revenue generated by free-to-air network television. It includes advertising on advertising video-on-demand (‘catch up’) services which also sits in Internet advertising under ‘Video’.
Australia's leading industry forecasting report into consumer and advertising spend across 12 segments
Welcome to the 20th edition of PwC’s annual Australian Entertainment and Media Outlook.
Our 19th edition, published in November 2020, was a special report that looked at the immediate impact of the most concentrated and rapid period of change within the entertainment and media industry in recent memory. Given uncertainty as a result of COVID-19, we introduced a range of forecasts - based on a positive, gradual and negative recovery - rather than a single forecast. This approach provided our audience with a range of potential outcomes, based on Australia’s progress against factors largely outside the control of the industry, including the timing of the vaccine roll out, ongoing use of lockdowns to manage contagion, the impact of the end to JobKeeper, and the return of business and consumer confidence.
At the time, we envisaged that this year’s edition would be a return to normal reporting. However, with the vaccine rollout taking longer than originally anticipated, international borders unlikely to re-open until 2022, and sporadic lockdowns a part of the “new normal”, approaching forecasting with a “ranged” approach remains appropriate for the market for the time being - although in most cases, the gap between the three potential forecasts has narrowed. Crucially, when providing the quantified forward view of the market via a Compound Annual Growth Rate (CAGR), we have taken into account the six years of 2019-2025, rather than the usual five year range of 2020-2025. This extended CAGR allows for us to provide a more realistic projection for each of the 12 sectors we analyse and ensures that the base from which we are reporting is not distorted.
Finally, in this year’s report, our special feature includes findings from a research study that we conducted to better understand the key factors that influence what people listen to, watch, read or play. Specifically, we look at consumers’ content appetites, which we define as their capacity and desire to consume specific content. While a distinctly personal experience, we found that there are four key factors that shape people’s content appetite and determine how willing they are to stretch it to try new things. This special report also looks into the types of consumption - routine, spontaneous and planned - and what all of this means for content creators and advertisers.
The growth of streaming services had a major impact on the whole media landscape in 2020 and into 2021.
The behavioural changes brought on by COVID-19 benefited the subscription television market.
Live music's recovery is clouded by factors outside the control of artists, promoters and entertainers.
Over the past 20 years, we've seen monumental changes in the entertainment and media industry — from technological advances to adoption of new digital channels. Use the timeline tool below to learn more about the history of the Outlook including the highlights, milestones and key insights over the years.
Bauer buys Pacific Magazines, then is sold to Mercury Capital, rebranded Are Media
AAP announces closure then saved by sale to consortium of philanthropists and investors
COVID-19 brought the future forward as shifts in consumer habits and advertising investment amplify and accelerate existing trends, and forged new opportunities for consumers, media and entertainment companies alike.
"While the industry has grappled with change, its relative resilience and ability to bounceback lies in the fact that demand from the end user - the consumer - has not waned."
Fragmentation - As consumers spread their time across multiple platforms, events and devices, the difficulty of aggregating a mass audience increased.
Consolidation - Media owners’ sprint to meet marketers’ demands for mass-reaching assets saw an M&A boom
Slow economic growth means a real challenge to gain share of wallet from consumers
Optus launches first 5G connectivity
For innovation-focused media organisations, the search for growth has in many cases meant a ‘back to basics’ reorientation around fundamental value delivered to consumers, and a willingness to break away from legacy models defined by platform.
Digitisation of channels driving growth for Newspapers, Music, Radio and Free to Air TV
Need for consumer media companies to regain/retain trust of the consumer given explosion in sources of content
Speed of access improving given proliferation of smartphones, but 5G the future driver
Nine Entertainment and Fairfax merge
OOH industry consolidates with mergers of APN & JCDecaux and oOh! Media & AdShel
Starting with content and the brand, companies need to focus on the key drivers of trust: advocacy, consistency, transparency and success.
Divergence of “traditional” vs. digital media spend gaining traction
Switch from product/channel to E&M companies becoming “media platforms”
Online video starts to be a major driver
Esports move from the basement to the mainstream
CBS buys Ten Network
Audiobooks.com launch in Australia
ACCC launches Digital Platforms inquiry
Internet Advertising passes 50% of total ad market
Competition is no longer a zero sum game - the new competitive landscape is underpinned by frenemies. We’re seeing three new circumstances arising as companies seek other revenues using their natural competitive advantage: competitors are potential new clients, or new partners, and key suppliers are now competitors somewhere else in the value chain.
Growth in Australian-produced content
Challenge of diversity in Australia's E&M industry - both in those employed in the sector and the content produced not being indicative of the Australian population
Media companies diversifying their revenue streams to drive growth
Nine Now launches
Amazon Prime Video launches
Southern Cross Austereo switches affiliation from Network Ten to the Nine Network while WIN Television switches affiliation from the Nine Network to Network Ten
Play School celebrates 50 years
Seven West Media’s acquisition of The Sunday Times publication and website from News Limited
News Corporation’s acquisition of APN News & Media Limited’s Australian Regional Media division (ARM)
Whether it’s due to shrugging off our colonial chip on the shoulder or improving our story-telling skills, over the last several years Australians’ tastes have shifted markedly towards a preference for Australian content. Evidence for this is found in the dominance of Australian content in our top forty television programs, notably sport, reality programs, news and high profile drama.
Tech start-ups lead innovation in the industry
True "year of the mobile"
Digital disruption for marketers starts to create opportunities
Netflix and Stan launch in Australia
Optus Sport launches in time for the 2016 World Cup
Foxtel and Ten Network’s minority acquisitions of Ten, MCN and Presto
It is finally time to take mobile very seriously - the extent of the shift to mobile is something fundamental. Mobile will continue what the web started and reshape media, marketing and entertainment over the next 10 years. 75% of the adult population is now estimated to be smart-phone equipped.
The marketers' viewpoint: the rise of owned media assets
The growing complexity of marketing in the digital era
The challenge of finding people with the right skills
The partnership between marketing and IT
Facebook buys WhatsApp
"Free-to-play” becomes a dominant gaming business model as titles such as CrossFire, Clash of Clans, World of Tanks, and even Kim Kardashian: Hollywood achieve sales in the hundreds of millions of dollars through microtransaction payments for in-game items and premium content
Macquarie Radio Network and Fairfax Radio Network merge
You have to have that curiosity. Without it, you won’t see the present, let alone the future, because everything is changing so fast.
The migration of technology from desktop to handheld to wearable starts to create a wider variety of data points for E&M businesses
Data privacy - how is the data stored and who has access to it?
Data volume increasing - people are spending more time online, creating more data
Data management - how does an E&M company which increasingly wants to reach its audience in a more relevant manner, manage all this data?
Conversion from analogue to digital television is completed
PS4 & Xbox One, with wholly digital versions launched
To stay relevant, content creators will have to innovate both in their products and the ways they deliver them. Distributors need agility and insight to deliver the right content at the right time, on the right platform, at the right place.
The rising costs of securing and producing Australian content put 'value' in the spotlight, forming part of the numerous regulatory reviews including The Copyright Act Review, The Finkelstein Inquiry, The Anti-Siphoning List Review and the Convergence Review.
Spotify launches in Australia
Facebook buys Instagram
NITV commences free-to-air broadcast via SBS
Foxtel Go launches for "Subscription TV through the internet"
Foxtel acquires Austar
Pandora Music launches in Australia
Global sales of tablets and smart devices reach record levels despite economic uncertainty.
Ad revenue bounce back after 2009
First signs of revenue bifurcation between digital products and printed products
Converging devices and digitisation rewiring how E&M businesses operate through the value chain
Strong Aussie dollar attracts more live music acts
First NBN services live
4G mobile internet launches in Australia
SBS On Demand launched
Recovery from 2009 downturn, though Australia remained more stable compared to other countries
Government stimulus leads to consumers buying in-home entertainment and driving the E&M market
Consumer spend (not ad spend) now dominating the E&M market as technology makes purchasing increasingly easy
Broadband roll out to be the real driver of E&M over the coming years
1st generation iPad launches
End of floppy disc manufacture
ABC News 24 as Australia's first free-to-air English news channel
Mobile the driving force - both data and content-led
Mobile ad revenue slow to pick up
Analogue to Digital TV switch taking time
Microsoft launches Bing search engine
Season 1 of Masterchef airs in Australia, the finale being watched by 6 million, the most watched event since the 2000 Olympics
Digital radio officially launches in Sydney, Melbourne, Brisbane, Adelaide and Perth
Amazon Kindle launched in Australia
The proliferation of non-voice content and services is working with growing mobile phone penetration to increase our reliance on the ‘third screen’. This reliance is said to be so great that it now takes most people less than an hour to realise their mobile phone is missing compared to almost a day to realise their wallet is missing.
Apple App Store is launched
Freeview Australia launched
ABC iView launched - the first BVOD service in Australia
Public release of Android mobile platform
"Platform Surfing" becomes the new “Channel Surfing” creating even more challenge to retain audiences
Expectation of M&A to come, taking advantage of changing consumer habits
Global economic instability leading to lower consumer confidence, though not as deep an impact to the advertising market with OOH, Internet Advertising and Subscription TV fairing “OK”
Sophisticated audience measurement a key driver of media company successes
The migration to digital formats has an adverse impact on competing revenue streams
Consumer-generated media is accelerating content fragmentation
As content becomes increasingly accessible over multiple platforms, consumption continues to grow
Broadband availability - both wired and mobile - drives spending
Sustained economic growth supports entertainment and media spending
First HD broadcast in Australia (Ten Network)
First iPhone launched
Compact Discs turn 25 years old
Ten & SWM launch HD channels
Convergence: music to MP3 players; news and video on mobile phones; online gaming; films downloaded over the internet
Explosion in new media channels: digi video; blogging, podcasts and social networks
Acquisitions and alliances around converging media
Google purchases YouTube
Nintendo's Wii console is released with motion-sensing controllers plus new PS3 and XBox 360 launched
The launch of Apple's iTunes Music Store and digital download music cards means licensed digital distribution of music will continue to increase.
Favourable economy supports entertainment & media spending
Maturation of “new” media products and services
Offset of declining categories vs. new media first discussed
Apple adds Podcasting to iTunes software signalling first “year of the podcast”
IAB Australia established
YouTube founded, first video uploaded on 23 April
Australian Communications and Media Authority (ACMA) is formed by the merger of the Australian Communications Authority (ACA) and the Australian Broadcasting Authority (ABA)
Facebook first available in Australia
Legislation passed to allow for the first DAB+ transmitters giving rise to first digital radio in Australia
Innovations including HD DVD and online film subscriptions will continue bolstering home filmed entertainment.
Return of confidence resulting in strong ad revenue
Reality TV boom creating sponsorship & product placement opportunities
Product and service innovations across sectors
First near-video-on-demand services plus online music and gaming services start to take off as broadband costs decrease
Regulation in Australia still in limbo
More sophisticated audience measurement and accountability
Facebook started in a Harvard dorm room
Google launches GMail
Merriam-Webster's Word of the Year was “Blog”
Digitisation heralds a new era in subscription television services, with the promise of video-on-demand and personal video recorders likely to encouragae subscribers over the coming years.
Reset of loss-making subscription TV sector with Foxtel/Optus deal
Impact of new technology - DVDs, Widescreen TVs, broadband, MP3 players
Gaming and Internet Advertising introduced as new Outlook report segments
Proliferation of piracy
ACCC report into the communications sector
Apple's iTunes store opens, first to Mac users, adding Windows users later in the year
Skype & LinkedIn both launch
Google launches AdSense allowing small website content creators to monetise their sites with Display ads, paving the way for the explosion in display ad revenue
3G mobile standard launched in Australia paving the way for mobile internet growth
"You only get to do a sequel if your first production opens strongly."
As more Australians sign up for high speed broadband Internet Services, online audio-visual entertainment - not just text-driven news and information - will be in demand. As the quality of entertainment content on the Internet improves, more eyes will be drawn to it, and advertising will follow close behind.
Deregulation in the media sector
Federal Government package of benefits to the film industry
Music industry reeling from piracy
Newspapers attempting to build viable business models around electronic (digital) distribution
Fragmentation of TV audiences
Xbox Live released
2nd Gen iPod launched, including Windows compatibility (start of real growth)
First camera phone launched - Sanyo SCP-5300
Blackberry smart phone released
SBS World News Channel launched
Industry body for video games in Australia the Interactive Games & Entertainment Association (IGEA) formed
"PricewaterhouseCoopers believes that the global entertainment and media sector is heading towards a highly digitised future, in which niche and customised content are the norm."
[The year previous was] a watershed year... tragic events of September 11, the stock market continued to lose its lustre. As they battled to integrate and deliver shareholder value, mega media companies such as AOL Time Warner and Universal Vivendi began to realise that size wasn't everything (See today!). The effects of the dot-com collapse rippled across the industry, while the worst advertising market in memory brought with it a wave of battered earnings.