Canadian Media Outlook 2012-2016

7/27/2019 Canadian Media Outlook 2012-2016

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Global Entertainment &

Media Outlook 2012 -2016

The end of the digital beginning

Association of Canadian Advertisers

Au ust 2 2012

pwc.com/ca/emoutlook

Michael Paterson & Aurlie Olives


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The end of the digital beginning

Mobile advertisingcoming to your device

Digital is business asusual

PwC LLP pwc.com/ca/emoutlook

The value of socialnetworks

Location basedadvertising

Mobile distribution ofcontent

Slide 2


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What we said 5 years ago about 2012

Mobile television willbe available in 2008and become a $100m

market by 2011 as newtechnology enables

2012 will see abroad scale rollout of IPTV andVOD will stealrevenue from

PwC LLP

speeds

The Internet

will constitute 19% of advertising

in 2012

Sports rights andsponsorship dealswill become morelucrative. Value of

online and mobilerights will also rise

significantly.

- -

Slide 3


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% Growth

2011 Actual Vs ForecastedSegments with Strong Growth

Internet Access

Internet Advertising

17.5%Vs.

12.1%

22.8%Vs

18.2%

PwC LLP Slide 4

0% 5% 10% 15% 20% 25%

Out-of-Home Advertising

Radio

TV Subscriptions

TV Advertising

Actual Growth

Projected Growth

Slide 4


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2011 Actual Vs ForecastedSegments with Weak Growth

% Growth

-3.5%

Video Games

Filmed Entertainment

PwC LLP Slide 5

1.7%

-3.0%Vs.

0.6%

-8% -6% -4% -2% 0% 2% 4% 6%

Recorded Music

Newspaper Publishing

Consumer Magazine Publishing

Consumer and Educational Book Publishing

Actual Growth

Projected Growth

Slide 5


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Entertainment and media growth rates

20122016

France

3.4%

Germany2.7%

UK3.1%

Japan

China12.0%

Russia10.1%

Canada6.5%

PwC LLP

5.2%2.8%

India14.3%

Brazil10.6%

Mature: 4.1% BRIC: 11.8%

Slide 6


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What will be the fastest growing segmentover next five years?

a) Out of home advertising

Poll Question

PwC LLP

b) Television Subscriptions

c) Television advertising

d) Video Games Spending

e) Filmed Entertainment

Slide 7


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TelevisionSubscriptions

+8.6%

...and the answer is

Out-of-HomeOut-of-Home

PwC LLP

FilmedEntertainment

+2.5%

TelevisionAdvertising

+5.4%

Video GameSpending

+5.3%

+6.0%

Slide 8Text emoutlook and your question to 37607 or Tweet #EMOutlook to @eusisdm

FilmedEntertainment

+2.5%

TelevisionAdvertising

+5.4%

Video GameSpending

+5.3%

+6.0%


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Money Makers: Advertising Segments

Internet Advertising

+15.7%Television Advertising

+ 5.4%

PwC LLP Slide 9

Out of Home Advertising

+6.0%Radio Advertising

+4.3%

Online Newspaper

Advertising

+ 11.1%


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Global advertising spending segment

Television36%

Other

InternetAdvertising

18%

2011

Television36%

InternetAdvertising

27%

2016Global advertisingCAGR to 2016: 6.4%

PwC LLP

Segment data here includes online/mobile advertising in the segments and excludes it from theInternet Advertising total

Slide 10

Newspapers18%

Radio6%

ConsumerMagazines

6%

Out-of-Home6%

10%

Newspapers14%Radio

5%

ConsumerMagazines

5%

Out-of-Home

6%

Other7%


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Televisionadvertising

28%

Internetadvertising

22%

Canada 2011

Canadian advertising spending by segment

Canadian advertisingCAGR to 2016: 6.6%

Televisionadvertising

27%

Internetadvertising

33%

Canada 2016

PwC LLP

Newspapers18%

Radio13%

Consumermagazine

5%

Out-of-home4%

Others10%

Segment data here includes online/mobile advertising in the segments and excludes it from theInternet Advertising total

Slide 11

Newspapers13%

Radio11%

Consumermagazine

4%

Out-of-home4%

Others8%


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Money Makers: Consumer Segments

Mobile TV +38% Over-the-topStreaming +18%

PwC LLP

Recorded DigitalMusic +12.8%eBooks +46%

Satellite Radio+12%

Slide 12


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Digital spending drives global growth

Digital is defined as: online and mobile

Internet advertising

mobile TV subscriptions

digital music

electronic home video

online and wireless videogames

digital consumer32%

39%

1500000

2000000

2500000

n

PwC LLP

magazine circulationspending

digital newspapercirculation spending

digital trade magazinecirculation spending

electronic consumer,educational, and

professional books satellite radio

subscriptions

broadband and mobileInternet access

82% 68%61%

18%

0

500000

1000000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$millio

Non-digital Digital


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Canada- Digital spending will grow

at a CAGR of 13.7% from 2012-2016

50,000

60,000

70,000

36%

PwC LLP

-

10,000

20,000

30,000

40,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

$million

Non-digital Digital

29%

71%64%

85%

15%


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Key Trends

Social Mobile

PwC LLP

Local

Slide 15


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SocialMobile

Local

Social

PwC LLP Slide 16


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2011 2016

MobileUnit Sale of Smart Devices

Local

Social Mobile

PwC LLP Slide 17

355MSmartphones

65MTablets

23Mebooks

88Mebooks

330MTablets

940MSmartphones

Slide 17


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MobileInternet access spending & advertising

Mobile is still an underutilized advertising medium given the time peoplespend with the mobile devices on uses other than calling.

Local

Social Mobile

$5,000

Mobile internet access in Canada

$400

$500

Mobile internet advertising

PwC LLP Slide 18

$0

$1,000

$2,000

$3,000

,

2012 2013 2014 2015 2016

$0

$100

$200

$300

2012 2013 2014 2015 2016


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LocalLocation-Based Marketing

Social Mobile

Local

PwC LLP Slide 19


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The Entertainment & Media Value

Chain

PwC LLP Slide 20


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Integrating digital across the business-Key Priorities

Cost optimisation andprocess integration

Rights and royaltyoptimisation

Metadata modellin

PwC LLP

Back catalogue consolidationand commercialisation

Digital content andpublishing integration

Talent . . .

Slide 21


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What will be your biggest challenge to monetizedigital content or earn digital advertising revenue innext five years?

a) Internal skills, resources or systems not adequate

Poll Question

PwC LLP

b) Consumers believe they should pay less or not payfor digitally distributed contentc) Piracyd) Finding the right business model(s)e) The general economy

Slide 22


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The raw materials

- talent and innovation

The proportion of E&M CEOs who told ustalent constraints have caused them to

PwC LLP

cance or e ay a ey strateg cinitiative in the past year:

Slide 23

Text emoutlook and your question to 37607 or Tweet #EMOutlook to @eusisdm


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The Millennials challenge

PwC LLP

Talent and innovation

...set free by leaders

who understandbehavior


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PwC LLP Slide 25

Documents

Canadian Media Outlook 2012-2016