Empowered consumers looking for digital entertainment are expected to drive expenditures in this category, globally, through 2015. This news comes from PriceWaterhouseCoopers (PWC) in the firm’s newly released Global Entertainment & Media Outlook 2011–2015. Analysts predict global entertainment and media spending will rise from $1.4 trillion (2010) to $1.9 trillion in 2015. In the U.S., spending will jump from $443 billion to $555 billion.
Analysts expect the shift to digital entertainment to accelerate during this time frame as well. Currently, spending on digital comprises 26% of total industry activity. By 2015, that figure will rise to 33.9%. To meet consumer demand, content providers are now fully engaged in efforts that deliver entertainment to multiple platforms, a strategy that generates multiple income streams.
At the same time, these providers find themselves in the position of having to convince consumers of the value of the content. Marcel Fenez, Global Leader, E&M practice, PwC emphasizes, “this is a golden age for consumers, who have never had it so good when it comes to accessing premium content (often free) over multiple devices. The bottom line is that in order to continue to create quality content, someone has to pay.” In the next few years, content providers will not only have to build their brands and their products, they’ll have to determine whether freemium or micro-payment models work best. Another strategy may be the rented access to content.
The continued shift to digital has prompted PWC analysts to suggest the rise of the collaborative digital enterprise (CDE). Companies operating in this new business model will have digital content, processes and product innovation strategies in place. CDEs will also serve empowered consumers who ask for exactly what they want, and they’ll also make good use of digital data which will appeal to marketers.
This kind of collaboration will lead to a continued increase for digital as a percent of total ad spending. In 2010, digital accounted for 15.9% of global industry spending. By 2015, digital will amount to 22.5% of ad dollars.[Sources: PcW: U.S. Entertainment and Media. Televisionbroadcast.com. 14 Jun. 2011. Web. 24 Jun. 2011; Global age of the digitally empowered consumer. Pcw. 14 Jun. 2011. Web. 24 Jun. 2011]