Canadians are getting pickier in terms of how they consume media and entertainment, but this doesn’t mean they are looking for experiences that are purely digital and turning away from traditional forms of content consumption.
What we are seeing in this country is a resilience and resurgence of old-fashioned content delivery, according to the findings of a PwC study released June 3. Canadians want more live experiences that can be shared and experienced. They want to see live bands and go to the movie theatre, as opposed to sitting at home and watching or listening from a computer or other device.
According to the study, spending at live music venues is projected to grow 3.5% annually, while box office ticket sales are forecast to grow 3.4% per year, over the next five years.
By 2019, 88% of all entertainment and media revenues in Canada will be from traditional, non-digital sources. This is eight percentage points higher than the global average of 80%.
While the way content is delivered – digital vs. non-digital – is irrelevant to consumers, in many ways, the two forms are “melding together,” PwC said in its report, resulting in more consumer choice.
Overall Canadian entertainment and media revenues – both digital and non-digital – will increase 5% over each of the next five years, to $61.2 billion in 2019. This growth is slightly lower than the expected increase of 5.1% worldwide.
“After a decade and more of digital disruption, during which the entertainment and media landscape has struggled constantly to keep pace with advancing consumer expectations, it’s increasingly evident that there is no significant divide between digital and traditional media in eyes of consumers,” the report said.
“Instead of a divided landscape, what we have is a fluid and multifaceted ecosystem – one where new digital offerings have created a bigger, more diverse content universe, and where digital has accelerated delivery across platforms.”
Although they are not looking to give up traditional media and entertainment, Canadians are interested in flexibility and overall user experience, which includes attractive, on-demand content and social community aspects.
“Canadians want choice when it comes to how they consume media and the type of media they consume,” said PwC partner, audit and assurance Lisa Coulman.
“The user experience is as important as compelling content – it’s about the ability to personalize and consume content that is relevant to them on their terms.”
Digital advertising on the rise
Advertising in Canada is expected to increase 3.6% annually until 2019, compared with 4.7% globally, and mobile and video ads will lead the pack.
“There is a clear move towards digital [advertising] – a fact underlined by Internet advertising’s position as the fastest-growing segment of advertising through to 2019, overtaking global broadcast TV advertising,” the report said.
“By that year, digital advertising as a whole – including digital out-of-home – will account for 44.5% of total Canadian advertising revenue, up from just 19.2% in 2010.
“A primary driver of digital advertising throughout the forecast period will be rapid rises in mobile and video Internet advertising.”
The future of entertainment and media
In order to succeed going forward, PwC said in its report, entertainment and media companies need to innovate their product and user experience, promote mobile and video offering and develop consumer relationships across distribution channels.
“It’s time to embrace the fact that mastering the user experience is critical to success in this industry.”
