Consumer spending on entertainment and media in the U.S is expected to rise to $720 billion in 2020 from $603 billion in 2015, according to a new report from PwC.
Despite the disruptions caused by technology and intense competition for consumer attention, there are many growth opportunities in the new media environment, the consulting company said.
U.S. spending in TV and video is expected to rise from $121.4 billion to $124.2 billion in 2020, or a 0.5% compounded annual growth rate.
And while internet advertising is expected to rise at a nearly double-digit rate—from $59.6 billion in 2015 to $93.5 billion in 2020, PwC expects broadcast TV advertising growth to be fairly robust in the face of digital disruption and grow at 2.8%, hitting $70.4 billion in 2017.
Globally, entertainment and media worldwide revenues are expected to rise at a compound annual growth rate of 4.4% over the next five years, from $1.7 trillion in 2015 to $2.1 trillion in 2020.
“Today’s entertainment and media reality is one of companies intensely competing for dollars with the increasing proliferation of free online media alternatives. This global multi-speed media landscape has created unprecedented challenges for companies in the battle for customers and value,” said Deborah Bothun, PwC’s Global and U.S. Entertainment & Media leader. “The acceleration of digital and technology innovation is expected to continue to force companies to innovate and reimagine the industry as we know it.”