Millennials ruling content consumption: PwC

OTT streaming will grow by 10.3% annually in Canada through to 2020, according to this year's entertainment and media outlook.
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Canada will see a slowdown in entertainment and media revenues over the next five years, according to PwC’s Global Entertainment and Media Outlook 2016-2020.

The country is predicted to see its entertainment and media revenue rise at a compound annual growth rate (CAGR) of 3.5% over the coming five years, from $43.8 billion U.S. in 2015 to $50 billion U.S. in 2020. That growth rate is down from last year’s 5%, and lags behind the 4.4% predicted global numbers.

The firm predicts the most expansion over the next five years to come from internet advertising, mobile technology adoption and OTT streaming, all due to the content consumption habits of millennials, Anita McOuat, partner, entertainment and media, PwC Canada, stated in a release.

Globally, the report shows that entertainment and media growth in the world’s top 10 youngest markets is rising at a rate three times faster than the 10 oldest markets.

OTT streaming is predicted to experience a CAGR of 10.3% through to 2020 in Canada, while internet advertising is set to grow by 9.8%.

OOH advertising is set to continue its growth, with an expected CAGR of 5.3% in Canada through 2020. That growth is led by gains in digital OOH advertising, according to PwC, and will account for 47.3% of total OOH revenue for the period.

Newspaper revenue is expected to fall at a CAGR of -6.2% through 2020. In contrast, magazine revenue is expected to stay largely flat through 2020, with rising consumer usage of magazine websites offsetting losses in print. The report notes that despite spillover content from the U.S., 98% of the top 100 magazine titles in Canada are domestically produced.

TV advertising is expected to grow slightly, with a CAGR of 1.8% expected through 2020.

Radio is also predicted to experience slow growth, with a CAGR of 2.5%, through 2020, according to the PwC report.

 

 

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