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...Digital Media & Entertainment

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The digital and creative sector is an important part of the economy, and creative jobs are embedded across numerous sectors, encompassing a wide range of activities, including: computer programming and consultancy; publishing; films, commercials and music; programming and broadcasting; video and audio recordings, games and publications, design and photography; and creative arts and entertainment.
The sector is a key providers of direct and indirect value – generating cross-over and spillover effects in terms of ideas, services, intellectual property and distinctiveness across the economy.

The media sector is experiencing an exciting period of change, with its focus continuing to shift to digital. Indeed, as digital becomes all pervasive there is an increased blurring of where one industry sector ends and another begins.
Spending on traditional paid media is coming under growing pressure as advertisers devote more resources to digital, database marketing, event marketing, place-based media and even loyalty programs.
As consumer time and spending are shifting to digital, there is increasing need to drive both innovation and efficiency, embracing new approaches to content development, distribution, operations, technology, and monetisation. In short, they need to adapt their strategies, capabilities, and operating models to address several key imperatives.
Traditional barriers associated with distribution and regulation, are no longer relevant, and emerging markets have become key to sustainable growth. Across Latin America, Asia, Russia and the Middle East, the multimedia landscape is developing rapidly. Companies looking for growth are evaluating partnerships and acquisitions that result in a greater exposure to these geographies.

Source: PwC

The sector however presents some strategic opportunities.

To realise these, businesses needs to be more agile, adaptable and collaborative for sustainability and growth, which can then catalyse innovation and deliver value to other sectors through direct trade and spillover effects.
Further growth in demand for digital content and services, in particular, is expected to drive expansion of the digital and creative sector. There are particular concerns about the ability of the education system to supply the quantity and quality of workers needed for digital roles.
Reflecting the increasing convergence between digital and creative activities, technological trends will be the most important influence on the future development the digital and creative sector and its skills needs.

Significant technological trends will include: strong growth in demand for technology from across the economy; the growing importance of cyber security; the convergence of content across platforms; mobile and cloud computing; big data and analytics; the automation of routine tasks; new applications of social media; and new business models and collaborative platforms.
The future development of the sector could also be influenced by regulatory changes. Some of these may reflect the need to make current regulations more relevant to the digital world, such as changes to rules governing the ownership and use of data and intellectual property.
Demographic and economic factors will also shape skills needs. Workforces may increasingly include a more diverse mix of older workers that retire later, and millennials that bring a deep and intuitive knowledge of digital technologies.

The shift to digital is bringing a transformation in the entertainment industry, as evidenced by increasing on demand viewership and consumer shifts toward web-based media and mobile apps.
In today’s search-driven world, as online video, social media and mobile media are expanding rapidly, consumers are actively looking for control, community, and interactivity. The goal for ad-relying media companies, is to move from creating impressions to building relationships with consumers. New relationship marketing strategies are in place to drive consumers to stores, theatres, and other screens as well as to activate other desirable actions.
Thus, every Media, Publishing & Entertainment company must gain a clear understanding of the legal environment in which it operates, and develop an effective voice for influencing the future course of that environment.

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The publishing industry includes the production of printed and digital information for individuals and businesses - books, magazines, journals, newspapers, databases, directories and electronic media.

Book publishing is changing:

  • The traditional book publishing and distribution system is under pressure to change to digital e-books.

  • Publishers should consider a strategy of cooperation rather than competition with online retailers.

  • Adding video and other multimedia capabilities will make e-books more attractive in the textbook industry.

Magazine publishers need to know about and understand who reads their publications so that they can provide advertisers with not just the opportunity to build coverage and target specific audiences, but also the advantage of being associated with a unique reader-magazine relationship.

Technology shifts are increasingly affecting the value of content and distribution.

Delivery mechanisms are changing, and companies must reassess their interactions with upstream suppliers, downstream sales channels, go-to-market partners, customers, and the extended supply chains that connect it all.
The legal and regulatory landscape is quite uncertain, and issues as privacy and copyright law, and content, patents, and other forms of intellectual property are rather ambiguous.
Overall, cost structures for content need to be significantly reduced. Key levers include introducing more variable cost by maintaining fewer staff editors and content producers as well as managing networks of external contributors, while trying to contain fixed costs through centralisation, outsourcing, offshoring, and portfolio rationalisation.

Implementing new business models

Adopting modern best business practices are vital for Media, Publishing & Entertainment companies pursuing innovation and change. The rapidly changing digital marketplace is placing new demands on systems and processes. Many companies are taking a top-to-bottom look at the infrastructure that supports both new and old business models. Many are finding that their organisations, processes and tools are not up to the task of supporting the new digital business models.

According to Ernst & Young the focus is on to:

  • Develop processes and organisational infrastructure with the necessary flexibility to keep pace with the speed of digital innovation.

  • Reevaluate and improve systems, processes and policies across both traditional and digital platforms.

  • Build IP management systems that encompass the entire life cycle associated with managing contracts, rights use and royalties.

  • Deploy a rights management system that tracks which content can be used when, where and in what formats.

  • Automate rights systems to increase speed to market and decrease risk of contract violations.

  • Focus on digital supply management to ensure that media assets can be easily found and distributed across media platforms.

  • Increase data capture to support new business models and drive decision-making.

Maintaining cost discipline

Media, Publishing & Entertainment companies are analysing which in-house processes could be performed through outsourcing or other arrangements without impacting their core products and services.

The focus is on to:

  • Assess cost control initiatives to improve value for the company.

  • Adopt and transition to outsourcing, co-sourcing and/or shared services.

  • Perform scenario-based planning and forecasting to help improve cost efficiencies.

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Despite continued widespread industry disruption and intense competition for consumer attention, growth opportunities abound for companies to capitalize on the new media environment.
Entertainment and Media worldwide revenues are expected to rise at a compound annual growth rate (CAGR) of 4.4 percent over the next five years, to $ 2.1 trillion in 2020.
PwC's Outlook forecasts U.S. Entertainment and Media spending to reach $ 720 billion by 2020.

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  • Business-to-business is expected to rise from $ 85.6 billion to $ 99.8 billion in 2020 (3.1 percent CAGR)

  • Book publishing revenue is expected to rise from $ 37.8 billion to $ 43.7 billion in 2020 (2.9 percent CAGR)

  • Magazine publishing revenue is expected to grow from $ 30.5 billion to $ 30.7 billion in 2020 (0.1 percent CAGR)

  • Out-of-home advertising is expected to rise from $ 8.8 billion to $ 10.9 billion by 2020 (4.3 percent CAGR)

  • Radio is expected to rise from $ 21.4 billion to $ 23.1 billion in 2020 (1.6 percent CAGR)

  • Music revenue is expected to increase from $ 15.2 billion to $ 18.0 billion in 2020 (3.5 percent CAGR)

  • TV advertising revenue is expected to rise from $ 69.9 billion to $ 81.7 billion in 2020 (3.2 percent CAGR

Radical shifts are being observed in the U.K Entertainment and Media Outlook.

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Entertainment Media Usage

From traditional to online media. From reading or watching to listening and gaming. Data on penetration rates and time spent consuming media, and facts about social media usage.
Media reach is measured by the time individuals spend with a medium within a certain period, consumption patterns and devices used for its consumption.
Data on the news consumption to stay informed of current events, as well as data on media channels used to consume news of various types: domestic news, international, sports and celebrity news.

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Information and data related to online video and entertainment including streaming media such as music and audio, demographics and video usage duration.

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Digital video penetration in the US
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Data on the audio-visual and broadcast industries, including production, broadcast and consumption figures for radio, TV, and film. Key industry figures on industry players’ revenues and market shares. Reach and penetration data for various television and radio technologies, as well as 3D cinema. Data describing consumer trends, such as movie-going behaviour, genre preference, and TV or radio device usage.

  • Cinema & film: Box office revenues as well as other key industry data, including consumer data, such as movie-going frequency, preferred film genres and snacks consumed at the movies.

  • TV & video: Data for the most significant companies in this sector, and penetration of TV technologies. Also provides TV ratings alongside data on time spent viewing TV and video content.

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Leading cable networks in the United States by number of total day viewers (in thousands)

Radio & audio: Data on industry revenue, employment, and leading companies, including time spent listening to radio and audio content, frequency of listening, preferred formats and devices.

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Industry revenues and expenditures, along with music consumption data and employment trends. Information on genre preferences among various audiences and demographics, including the usage of online music services like online radio and streaming. Data about the financials of major recording labels. Data on digital music revenue, more specifically subscription and streaming services, and accessing music through copyright infringement. Retail sales figures for both physical and digital music distribution. Plus data regarding music celebrities, such as artists’ earnings and popularity scores. Additionally, information about music retailers as well as investment in the music sector.

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Music preferences: Information on music tastes, time spent listening to music, average music expenditures per capita, and the devices used for music consumption.
Data on venues, concert expenditures, and major players in the business.

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Digital music revenue in the United States, by type (in million U.S. dollars)
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The toys and games industry consumption patterns have shifted towards more sophisticated video games, interactive and electronic toys, as a popular leisure pursuit.
Industry players are focusing on innovation and technological advancements, and their marketing efforts on older children and adults, by introducing new products on a regular basis.

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Video games & gaming: Data in the latest shifts in this fast developing segment of the media industry, and facts about gaming across all devices – from consoles and PCs, to mobile devices such as smartphones, tablets and handhelds, and consumption patterns among various demographics on various markets around the world.

Information on the video game and gaming industry, include revenues of the major players, employment, and unit sales and market shares, along with figures on gaming penetration among populations, time spent playing games, platforms and devices used to play games, and rankings of best-selling games.
Also included are statistics on software and hardware, console and accessory sales, gaming platforms, and numbers of players for online and social games.

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Facts, market data on casinos and the various forms of gambling that they offer, online gambling and sports betting.

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Las Vegas and Macau are leading the pack regarding the number of casinos and the revenue generated through gambling. Amongst the leading casino companies in the world are Wynn Resorts, Caesar’s Entertainment, Las Vegas Sands, SJM Holdings, MGM Resorts, Galaxy Entertainment Group.

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The boundaries between digital and creative are becoming increasingly blurred and employers increasingly seek a fusion of creative and technical skills, combined with business and softer skills.

The merging of digital and creative roles, higher client expectations and greater competitive pressures mean that employers in both the digital and creative sub-sectors increasingly seek a fusion of technical expertise, creativity and softer skills.

Rapid technological change means employers will value those workers who are best able to adapt and respond to technology. They will also seek those who can think strategically to identify ways to best exploit and adapt new technologies. Although this applies most directly to those in technical roles, there will be an increased need for digital skills right across the digital and creative sector, and indeed the whole economy.

Technological trends will call for individuals with specialised knowledge in cyber security, mobile and cloud computing, big data, and social media, but workers across the sector will need some degree of knowledge of these issues and their implications. Progress in some areas may be offset by a reduction in demand for those with skills in older technologies. The digital and creative sector will also need the expertise to anticipate how markets and consumers may respond to new business models, and regulatory and legal expertise to help shape and comply with new rules on IP and data protection.

Stronger people management skills may be needed as older workers retiring later find themselves working alongside young millennials with very different skills. Ever-closer global economic integration suggests a growing need for those with the skills to develop international networks.

Our reports provide key statistics and analysis on market operating conditions, business challenges, current and historical industry growth trends, and more. They offer an explanation of the structure of the industry and analysis across the value chain, market sizes, revenue growth, market and product trends, demographics, price trends, product/company rankings or comparisons, key players profiles, comparing national and multinational operators by sales, market share, investments, projects, partners and expansion strategies,designed to provide a better understanding of a market's competitive landscape, and market forecasts, projecting how current trends will influence industry sales and consumption patterns in the future, latest market developments and analyzing the potential effects of regulatory changes in conjunction with the background macroeconomic outlook.

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