PwC Global Entertainment & Media Outlook Has Positive News For Radio

New Report

PwC has launched its Global Entertainment and Media Outlook 2018-2022 report.

The report found U.S. is the largest radio market globally, accounting for nearly 50% of total radio revenue worldwide in 2017, with revenues of $22.1 billion. PwC writes, "Despite other emerging radio sectors experiencing faster growth over the next five years, the U.S. is set to increase its share of global radio revenue, with the market totalling $23.8 billion in 2022.: 

Advertising takes largest revenue share Research by NIELSEN revealed that US talk and news radio stations recorded some of their highest audience shares in 2017, compared to recent years. In MARCH 2017, talk and news radio accounted for 10.2% of the audience, driven by the election of President TRUMP in 2016. With the midterm elections scheduled for late 2018, it is likely this will continue as listeners endeavour to stay up to date with current affairs. "Elections often boost advertising revenue," the report notes, "as candidates invest in airtime to promote their campaigns. Advertising accounted for 81% of total radio revenue in the U.S. in 2017. Terrestrial online advertising revenue will drive the radio advertising landscape over the next five years, as broadcast advertising growth struggles." 

In NOVEMBER 2017, the FCC approved the merger of CBS RADIO and ENTERCOM to form a new radio giant, owning 244 stations. The company is now the second-largest radio operator, after iHEARTMEDIA. "At the time of the merger, ENTERCOM announced a desire to increase its share of radio’s advertising revenues, and help raise the profile of the industry, which ENTERCOM acknowledged was undervalued by advertisers," wrote PwC. "Effective ad investment across the radio industry will be supported by the increasing popularity of programmatic advertising. Programmatic technology enables agencies to more accurately monitor the success of campaigns and target time slots that are most appropriate for their advertising material. Audio ads are left relatively unscathed by fraudulent bots and AI, which can undermine legitimate advertising activities, as display ads continue to be the main target of fraudsters. Internet radio service PANDORA began using programmatic ad techniques in 2016, and media services agency HORIZON MEDIA suggested in 2017 that its digital audio inventory could grow exponentially in the next few years."

Highlights of the report include:

The U.S. music, radio and podcasts market was worth $40.7 billion in 2017, and is forecast to increase at a 4.0% CAGR to reach $49.5 billion in 2022.
Total recorded music revenue was $8.7 billion in 2017, an increase of 16.5% on the previous year. The value of the segment is expected to continue rising to $12.7 billion in 2022, a 7.8% CAGR.
Total digital music streaming revenue was $4.8 billion in 2017, up 58.5% on the previous year, and is forecast to more than double in value to $10 billion in 2022, increasing at a 16.7% CAGR. 
While streaming accounted for just 22.7% of digital recorded music revenue in 2013, it is expected to account for 97.3% by 2022.
The U.S. podcast market is enjoying a period of unprecedented growth. The number of podcast listeners (defined as those have listened to at least one podcast in the past month) surged to 78m by the end of 2017, up from 23 million in 2013.

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