PwC: COVID Pushed Industry Revenue Down 3.8% in 2020, Rebound Expected

Media and leisure income globally dropped 3.8% in 2020 because the coronavirus pandemic led to an total $81 billion drop, based on PwC’s “World Leisure & Media Outlook 2021-2025″ report.

It’s no shock that COVID ravaged sure sectors of the enterprise. Film theaters noticed a 71% decline in box-office income and dwell music plunged 74% final yr.

“It’s the primary time we noticed such a stark decline available in the market,” CJ Bangah, principal at PwC U.S., who serves on the report’s editorial board. “What occurred through the pandemic was not stunning — the segments that confronted large declines in income made sense.”

The excellent news, per PwC projections, is that the general biz is projected to bounce again this yr and proceed rising, with a 3.5% compound annual progress charge from 2019-25, the agency predicts. The trade’s two hardest-hit sectors will even have the most important features in 2021, based on PwC: Cinema and dwell music will each see income will increase of greater than 90% this yr, to $25.37 billion and $14.15 billion, respectively. Nevertheless, it should take concert events till 2023 to return to pre-pandemic ranges and film theaters till 2024.

One of many few areas that noticed progress in 2020 — additionally unsurprisingly — was over-the-top video. Subscription-streaming service income surged 29.4% final yr as folks have been caught at house (and continued to drop pay-TV providers). The SVOD market added greater than $11 billion in income, to achieve about $49.3 billion worldwide in 2020, based on PwC. The agency expects subscription VOD progress in 2021 to be softer however nonetheless enhance 13.2% (to $55.8 billion) with a projected 10% CAGR from 2020-25.

World Leisure and Media Income (in Trillions of {Dollars})
PwC Global Entertainment & Media Outlook 2021-2025

Supply: PwC’s “World Leisure & Media Outlook 2021-2025″

To Bangah, probably the most stunning discovering from PwC’s analysis was how briskly customers shifted media-consumption patterns amid the COVID disaster. “Shoppers have been taking management of their leisure expertise for a number of years,” she mentioned, “however the pandemic confirmed how shortly they will change their habits.”

Over the subsequent few years, the most important progress constraint on particular person classes might be shopper time, Bangah mentioned — there are, in spite of everything, solely 24 hours in a day. That can enhance aggressive stress on gamers throughout all segments. As well as, she expects to see rising “multigenerational variations in how customers are selecting to be entertained.” For instance, Gen Z consumers have expressed far greater affinity for playing video games than watching TV and movies than their elders.

Different particulars from this yr’s PwC leisure and media outlook report, now in its twenty second yr:

  • There have been 410 M&A offers introduced within the six months ended Could 15, price $83 billion — up from 61 offers within the second half of 2020 and simply 32 within the first half of 2020. (The tally doesn’t embody AT&T’s plans to spin off WarnerMedia and combine it with Discovery, a deal PwC ascribed a price of $93 billion.)
  • World knowledge consumption in 2020 elevated 30.4% over the earlier yr, and is anticipated to rise at a 26.9% CAGR between 2020-25. Video stays the most important content material class by far, accounting for 78.3% of worldwide knowledge consumption in 2020. Spending on web entry elevated $14 billion, up 2.1%, accounting for 34.1% of all spending.
  • Total promoting income is anticipated to rise from $582.5 billion in 2020 to $797.8 billion in 2025. That might be pushed by digital progress, as conventional promoting classes akin to TV and print stagnate or decline.
  • In 2020, shopper spending on leisure and media fell 5.5%. By 2025, the full is projected to rise to $914.9 billion, representing a 3.9% CAGR from 2021-25.


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