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New Phase of Media: What will Media look like in future

While the media and entertainment industry was one of the first sectors of business to navigate digital disruption, its transformation is far from over. That’s the key finding of PwC’s annual “2018 Media & Entertainment Outlook,” which projects that industry revenues will reach $792.3 billion by 2022, up from 666.9 billion in 2017.


During the five-year period from 2017 to 2022, virtual reality (VR), over-the-top (OTT) video and internet advertising will be among the fastest-growing revenue generators for M&E companies in the U.S., PwC predicts.


The VR market is quickly transforming into an entertainment and productivity platform. In fact, outlets such as USA Today, Washington Post, and The New York Times are on board the VR journalism trend.


The U.S. is currently the world’s leading VR market, with revenue of $1.5 billion in 2017, a 250%-plus increase year over year. By 2022, that total is expected to reach $7.2 billion.


OTT video revenue for media and entertainment (think: HBO Go, Hulu, Netflix) in the U.S. reached $20.1 billion in 2017, up 15.2% YoY.


PwC predicts that growth rates will begin to slow as the market matures, but revenue in this area is expected to reach $30.6 billion in 2022.


Additionally, the U.S. continues to lead the global Internet advertising market, with total revenue of $88 billion in 2017. The report predicts that the market will continue to experience growth over the forecast period, expanding at a 7.7% CAGR between 2017 and 2022 to reach $127.4 billion.



Convergence Throughout The Industry

Convergence will be a big M&E theme during the next five years, according to PwC.

For example, streaming services, TV companies, and social networks are now competing over both conventional sports and e-sports rights, the report points out. Additionally, TV companies, telecoms, tech companies, OTT operators, and movie studios are competing to provide TV content.

Radio stations, podcast companies, and streaming services are competing to provide radio and podcast content. Brands, too, are jumping on board, creating content to engage the same audiences that M&E companies are after.

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5G To Evolve What Content Is

The move to 5G wireless networks affects telecom operators, but it also changes what’s possible in terms of the experiences faster broadband will facilitate. Just think of T-Mobile’s recent acquisition of broadband video startup Layer3, which will enable it to launch an internet-delivered television service across the U.S., powered by 5G.


For its part, Sprint has already made access to Hulu available in some of its packages, which will certainly drive consumption once 5G comes to fruition. Plus, 5G is developing alongside continuing advances in artificial intelligence, the worldwide rollout of IoT devices, the evolution of virtual and augmented reality, and location-based services. From a content perspective, the opportunities to innovate in the next five years—and beyond—are seemingly endless.

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M&A Continues


A ton of merger and acquisition news has been making headlines in M&E. Take the approved $85.4 billion mergers between AT&T and Time Warner. And let’s not overlook Disney’s intent to acquire most of the assets of 21st Century Fox. The bigger picture? These deals will set a precedent for future M&E consolidation.




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