Thai entertainment and media revenues to reach $13bn in 2021: PwC

Stocks and Financial Services Press Releases Wednesday August 2, 2017 11:45
Bangkok--2 Aug--PwC Thailand
E&M companies must harness data and invest in user experience amid a bleak adspend outlook, PwC says

Thai entertainment and media (E&M) spending is expected to reach US$13 billion by 2021, growing at a compound annual growth rate (CAGR) of 5.9%, according to PwC's Global entertainment and media outlook 2017-2021.

Globally, PwC expects E&M spending to rise from US$1.9 trillion in 2016 to US$2.3 trillion in 2021, representing a CAGR of 4.2% – down from the 4.4% CAGR in last year's E&M Outlook.

The latest Outlook by PwC shows some emerging segments with robust growth, including virtual reality and e-sports. But overall E&M industry is facing a slowdown worldwide as competition intensifies and the advertising landscape changes.

"Today's E&M companies are facing ever-increasing pressure on all fronts, whether it be changing consumer behaviour, technological disruption or rising competition from both new and existing players," said Nattaporn Phan-Udom, a partner at PwC Thailand.

"As tough as it is to become a winner in this slow-growth environment, we believe that E&M companies must work harder on investing in user experience, getting people to share and engage, while capitalising on data and technology to better serve and understand their needs."

Internet advertising takes the lead in Thailand
While mature segments such as newspaper is forecast to decline at a -1.8% CAGR through 2021, the internet advertising market is the fastest-growing segment in Thailand.
By 2021, PwC's forecast for total spending on internet advertising in Thailand – one of the smallest markets in the region – will reach US$725 million, at a CAGR of 20.3%.
The report says that the market will gain from key factors including new household fixed-line broadband internet subscribers, rising mobile internet subscribers and social media.

"The popularity of social media will provide even greater opportunities for SME and advertisers to use it as an e-commerce platform to showcase their products, drive sales and interact with consumers," said Nattaporn, citing data from the Outlook that showed Facebook has around 37 million users in Thailand.

Video game and internet video boom
Spending on video games is set for the second-fastest growth as Thais spend more on virtual segments than traditional TV and home video.
By 2021, Thailand's video-game revenue will grow at an 18.4% CAGR over the forecast period, more than doubling to US$1.7 billion.

Major catalysts supporting the once-niche world of online gamers – a young demographic market –include developed broadband access, greater smartphone penetration and growing demand for social/casual games.

"Video gaming is increasingly becoming a money-making market. The industry has lots of potential, with demand now covering almost all age groups and demographics. The segment is definitely one to watch as Thailand leads with the highest CAGR growth (over the forecast period) in ASEAN ahead of Indonesia and the Philippines."

Thailand's internet video revenue is expected to hit US$38 million in 2021, growing at an 11.4% CAGR. This expansion will also overtake physical home video revenues for the first time in 2019, the Outlook showed.

In 2015, Japan's messaging app company Line launched a YouTube-like video service in Thailand that streams shows through Android, iOS apps, as well as on the web. US streaming giant Netflix, with many hit shows around the world, has also expanded to capitalise on the fast-growing Thai market.

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