‘Boom’ incoming for entertainment, media industries in 2025: PwC outlook
The big four firm has released its entertainment and media outlook for 2024, highlighting significant growth in digital media.
PwC highlighted advertisers who harness the full value of digital media are reaping awards, in the 25th edition release of the Australian entertainment and media outlook.
In the outlook, PwC Australia said it is predicting 2025 will see a “boom” for advertisers, consumers and media companies.
The sector revenue has been perceived to grow by 3.4 per cent in 2025.
The research also showed revenue for the Australian entertainment and media industry hit $62.3 billion in 2023, a 2.8 per cent increase year-on-year despite macroeconomic and sector-specific challenges.
This was followed by the finding of how digital advertising has developed and grown since 2013.
PwC partner and technology, media and telecommunications leader Louise King said the release of the recent report demonstrates the importance of taking “calculated risks” in new technologies to appeal to modern consumers.
“Back in 2013, digital advertising represented only 27 per cent of the advertising pie. Over the next five years, it’s set to hit close to 80 per cent,” she said.
“This speaks not only to the pace of change, but the success Australian advertisers have seen in shifting their strategies to better suit the tech-enabled world we live in.”
PwC said internet-enabled advertising, such as search and video, is forecasted to represent 73 per cent of the Australian market in 2028.
This would achieve a compound average growth rate (CAGR) of 5.9 per cent from 2023 to 2028.
King said the “big gorilla” can be attributed to this growth in advertising.
“Several factors have driven this huge growth, but the ‘big gorilla’ remains in search- now bolstered by the rise of the search activity on retailers’ e-commerce sites, such as Amazon, Coles, Woolworths and eBay,” she said.
The outlook research showed retail paid search advertising’s share of total paid search advertising rose by 7.8 per cent to $529 million in 2023.
PwC said it is expected for retail paid search to see a 23 per cent CAGR to hit $1.5 billion by 2028.
Along with the predicted “boom” in 2025, PwC said they expect a “resurgence in volume of premium scripted content.”
This prediction comes with the return of Stranger Things, The White Lotus and Severance after a three-year break on Netflix, BINGE and Apple TV+.
It is forecasted this will lead to a growth in box office spending and subscription-on-demand revenues in 2025, said PwC.
Another positive point in the outlook is the growth of the Australian video game production sector.
“Of approximately $4 billion in revenues in 2023, $345.4 million is attributable to games developed in Australian studios, an increase of 21 per cent on the previous year,” PwC said.
It is expected consumer games revenue will reach $5.5 billion in 2023, while e-sports are expected to achieve a CAGR of 10.1 per cent forecast to reach $37 million by 2028.
In terms of the outlook, traditional TV saw a decline of 15.3 per cent to $4.7 billion in 2023.
This followed the decrease in news media revenues which declined by 6.9 per cent in the previous year.
PwC said it does not expect Australian TV and radio broadcasters to make up for the decline in revenue.
King said broadcasters need to move with the times to remain competitive.
“Broadcasters are moving the dial by exploring new revenue streams,” she said.
“The key to staying competitive against international players will be continuing to invest in new products and services that appeal to Australian consumers and advertisers alike.”
King said broadcasters will need to take advantage of fast channels, better cross-platform audience measurement, digital ad insertion into linear ad breaks and new ways to monetise opted-in viewers and listeners directly.
The entertainment and media outlook for 2024 reflected the drastic change Australia has seen in traditional media.
“In 2013, printed newspapers, television and radio took 60 per cent of all advertising revenues in Australia.”
In 2023, these media avenues only captured 20 per cent of advertising revenues. This is predicted to continue decreasing, measuring at only 11 per cent in 2028.
King said the entertainment industry will continue to face challenges in the external environment.
“The Australian industry has always thrived on technological disruption, companies looking to succeed in this market will need to be bold in strategic risk taking and move-at pace, capitalising on the digital growth the sector is seeing.”
