PwC launches Global Entertainment and Media Outlook 2017-2021
Global Entertainment and Media Outlook
June 12, 2017
By James Chen
PWC has released findings of the Global Entertainment and Media Outlook 2017–2021. According to the report, total worldwide entertainment and media revenues will rise at a compound annual growth rate (CAGR) of 4.2% in nominal terms over the coming five years, from US$1.8 trillion to US$2.3 2.2 trillion in 2021.
The television industry is diverse. The differences are especially magnified with the heterogeneous nature of the industry in the various markets of Southeast Asia.
Subscription TV penetration in Singapore remains high at 76.8% but has fallen in recent years as households cut back on discretionary spending and lower-cost online platforms gain popularity. Penetration of 76.7% in 2021 will see a small rise in the total number of subscription TV households due to population growth, with just over 1m paying for TV. IPTV will grow at a stronger rate of 2.3% CAGR to reach 486,000 households in 2021, but the cable sector will still lead with 546,000 households.
Starhub has seen its cable customer base decline over the past two years and ended September 2016 with an estimated 502,250, down from 538,500 a year earlier. The company has a further 9,000 IPTV households, although the service remains in its infancy having launched in mid-2015. IPTV is dominated by incumbent telco SingTel, which reported 412,000 subscribers at the end of the third quarter in 2016. This also reflected a decline of 11,000 customers over the year as competition from online platforms begins to make an impact. It reported pay-TV revenue of S$283.9m in the nine months to end-September 2016, down 7.1% year-on-year. Pay-TV typically contributes around 16.1% of the company’s total revenue.
SingTel renewed the English Premier League football rights in November 2015, securing the right to broadcast matches until the end of the 2018/2019 season. Coverage will also be offered through the SingTel TV Go app for connected devices.
The Info-communications Media Development Authority of Singapore introduced a scheme in September 2014 to help certain low-income households upgrade to digital TV. Digital terrestrial TV (DTT) operator Medicorp offers six DTT channels, with four in HD. DTT is expected to gain share with analogue switch-off set to be completed by 2018.
On the extreme end, Myanmar has a nascent media industry but one that is now experiencing rapid acceleration and is attracting the interest of investors. For the first time, there are now a sizeable number of consumers that can afford to pay for media content – and a sizeable number of brands who are keen to advertise to them.
There were only five free-to-air TV channels broadcasting in Myanmar in 2009, but there are now over 20. Of the 6 million households with TVs nationwide, about a fifth have pay-TV. This means there are over 1 million pay-TV households (slightly above the 956,000 in Singapore). While the average revenue per user is very low, this is an exciting market for players in the media industry and has significant growth potential.