PwC Outlook Forecasts U.S. Industry Spending To Reach $720 Billion By 2020

New Findings

PwC has released its annual Global Entertainment and Media Outlook 2016-2020, an in-depth five-year outlook for global consumer spending and advertising revenues directly related to entertainment and media (E&M) content. Despite a relative slower growth projection for the industry at large, PwC’s Outlook forecasts U.S. E&M spending to reach $720 billion by 2020, from $603 billion in 2015. Despite continued widespread industry disruption and intense competition for consumer attention, growth opportunities abound for companies to capitalize on the new media environment, says PwC.

“Today’s entertainment and media reality is one of companies intensely competing for dollars with the increasing proliferation of free online media alternatives. This global multi-speed media landscape has created unprecedented challenges for companies in the battle for customers and value,” said PwC Global and U.S. Entertainment & Media Leader DEBORAH BOTHUN. “The acceleration of digital and technology innovation is expected to continue to force companies to innovate and reimagine the industry as we know it.”

Key U.S. Entertainment & Media Highlights

• Internet advertising in the U.S. remains the largest in the world with $59.6 billion in revenue for 2015, and a projected revenue of $93.5 billion by 2020 (9.4% CAGR). By 2017, Internet advertising ($75.3 billion) is poised to overtake broadcast TV advertising for the first time in the U.S. 
• Mobile advertising continues to be one of the big growth stories, making up 34.7% of total Internet ad revenue at $20.7 billion in 2015 and projected to rise to 49.4% by 2020. But the rise in mobile video Internet ad revenue will be the most remarkable, from $3.5 billion in 2015 to $13.3 billion in 2020 (30.3% CAGR). PwC expects the planned rollout of 5G networks will further accelerate the shift towards mobile consumption of video.
• Radio is expected to rise from $21.4 billion to $23.1 billion in 2020 (1.6% CAGR)
• Music revenue is expected to increase from $15.2 billion to $18.0 billion in 2020 (3.5% CAGR)

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