Recovery may be slow but it's there. At least for the media and entertainment industry, which according to the estimate elaborated by the annual report of PricewaterhouseCooper (Pwc) in Italy it will record an average annual growth of 3,5% between 2013 and 2017 to reach a total of 56,2 billion, mostly due to an increase in spending by end consumers (+3,8% annually to 49,1 billion, above all for internet and mobile services) and only to a small extent linked to an increase in advertising (+1,4 % annually at 7,1 billion).
This is what PricewaterhouseCooper's annual report reads, explained by Andrea Samaja, partner advisory E&M market leader of Pwc, in the usual presentation conference: “In 2017 almost all segments will be positive again and we are registering signs of a trend reversal in the advertising market which has digital as the main driver thanks to the diffusion of broadband and mobile devices whose penetration in 2017 will be equal to 85% of the population”.
According to Pwc's outlook, in 2017 the Italian Entertainment&Media market will therefore be worth 56,2 billion euros, with an average annual growth rate of 2013% for 2017-3,5. Internet, video games and gaming (including gambling) will continue to be the fastest growing segments over the next 5 years, with average annual growth rates of 10,4%, 5,9% and 4,6%. Advertising will be worth 7,1 billion euros, with an annual growth of 1,4%. In 2014 the turning point in the adv that goes from a negative sign in comparison with the previous year to a positive one.
Note once again the heavy influence that the digital world continues to have on the market, so much so that by 2017, digital will represent 31% of the total Italian media and entertainment market, reaching a total value of over 17,4 billion euros. "Publishing is particularly suffering, a sector often still linked to traditional organizational and business dynamics, while great flexibility is needed", continued Andrea Samaja, “The challenge for publishers is to get to know consumers better and better and offer them content on all possible platforms. Flexibility is also needed in business models and work organization to face digital. Digital activities that have always had – and still have – their weak point in increasing margins”.
