Increasing competition in digital media products such as music, games and information means that Canadian entertainment and media companies will need to continue to focus on innovation, according to a PwC report.
Digital media still captures only a small part of consumer spending worldwide, but the report states that the 9% consumers spent on digital media in 2012 will rise to 16% in 2017. PwC reports that much of the growth will take place in markets in North America, the South Pacific and Western Europe.
In Canada, online advertising revenue was US$3.2 billion in 2012 and is expected to reach $6.4 billion by 2017. Mobile advertising is also growing rapidly, with revenue expected to increase from $113 million in 2012 to $311 million in 2017.
By 2017, digital radio will capture 17% of all radio revenue, carried in large part by services through Sirius XM Canada.
The PwC report also notes that consumers are increasingly buying digital products instead of physical items like boxed video games, DVDs and CDs. By 2017, physical purchases will represent 53% of consumer spending on media, down from 78% today.
