Global entertainment and media revenues are expected to rise to $2.2 trillion in 2021, according to a report prepared by PricewaterhouseCoopers.
PwC is a UK-based multinational professional services network.
Turning to its 2017-2021 global E&M industry outlook, PwC forecasts annual revenues will increase from $1.8 trillion in 2016 to $2.2 trillion in 2021, a compound annual growth rate (CAGR) of 4.2 percent. That’s down 0.2 CAGR points from the five-year forecast PwC made last year.
Zooming in on the U.S., PwC expects E&M revenues will increase at a 3.6 percent CAGR for the period, the same as last year, rising from $635 billion in 2016 to $759 billion in 2021.
The firm warned that E&M revenues are approaching an industry plateau because mature segments are in decline. But the report shows that internet and digital E&M content is growing, though at a slowing rate, and that market segments such as e-sports and virtual reality (VR) are just beginning to accelerate.
The firm estimated that 68 million VR headsets will be in use in the U.S. by 2021 and that the installed base will grow at a CAGR of 69.2 percent. The report said that the VR segment is projected to add nearly the same revenue as TV advertising between 2016 to 2021, a total of $4.6 billion.
The report also pointed out that the U.S. online video industry is by far the most mature in the world. The U.S. currently accounts for 47 percent of total global online video revenues, but that number will fall to 43 percent by 2021 as more nations around the world catch up.
For 18 years, PwC’s global entertainment and media outlook has been providing expert commentary and global findings centered on the shifts in advertising and consumer spending. Its comprehensive five-year forecast focuses on trends that it identifies across 17 segments and 54 countries.