Australia's leading industry forecasting report into consumer and advertising spend across 12 segments
Welcome to the Australian Entertainment & Media Outlook 2020-2024, the 19th edition published by PwC Australia.
Like everything in 2020, this year’s Outlook is a little bit different. Amid the pandemic-induced economic shock in Australia, the entertainment and media industry is rapidly transforming. While some changes are likely temporary, COVID-19 has brought the future forward as shifts in consumer habits and advertising investment amplify and accelerate existing trends, and forge new opportunities for consumers, media and entertainment companies alike.
This year's Outlook focuses on the impact of COVID-19 on consumption habits, consumer revenue, and advertising revenue across 12 segments, and the industry as a whole. The Outlook presents three possible paths of recovery and their implications. Specifically, the three scenarios that we have mapped this year are as follows:
Positive: A more rapid return to pre-COVID-19 advertising and consumer expenditure, opening of international borders and minimal ongoing negative impact from the pandemic.
Gradual: Approximately 18-24 months of recovery, with modest return to pre-COVID-19 trajectory, depending on structural impacts of the pandemic on the specific sector within the industry
The incumbent Australian subscription video businesses (Stan and Foxtel) are dealing with unprecedented influx of competition from global entrants, and a heated contest for ownership of the content supply-chain.
After a period of decline in the printed distribution of newspapers, the Australian newspaper landscape during COVID-19 continues to change rapidly with advertising revenue declines driving the closure of printed titles, and an industry-wide focus on digital transformation and the monetisation of the valuable digital news formats.
Radio’s role as a ‘resilient companion medium’ was maintained through much of the lead up to COVID-19, given the need for people to access up to date and trusted news during the summer bushfire season, then regional floods before the pandemic took hold.
Whilst digitally distributed music including streaming has grown, COVID-19 has brought the live music industry to a grinding halt, with live concert events banned for prolonged periods, and no clear indication of when international touring will recommence.
COVID-19 has demonstrated the value of a reliable and nationally deployed NBN network, with a dramatic increase in traffic as a result of people learning and working from home, and an increased use of streaming video and audio services.
Following a long period of strong and sustained growth for the out-of-home (OOH) industry, driven primarily by the digitisation of inventory which both increased supply and demand for the OOH medium, COVID-19 lockdowns and restricted movement across Australia has heavily impacted consumption and subsequently impacted revenues and OOH companies' financial performance.
Interactive games and esports have prospered during COVID-19, with people looking for alternative forms of entertainment during lockdown periods, and whilst their favourite sporting codes were on hiatus.
The film industry was one of the hardest hit by COVID-19, with local large-scale production all but stopping, and cinemas closed for extended periods at the height of the pandemic, drastically reducing year-on-year box office and advertising revenues.
The Australian book industry continues to hold its share of consumer attention and spending, with ongoing development of consumer ebooks and modest growth in the audio book segment, driven by a strong market push by brands including Amazon-owned Audible.com.