Swiss media and entertainment industry growing more slowly
The Swiss media and entertainment industry is growing at a slow pace. Overall, revenue in 2023 rose by 1.7 percent to 21.4 billion francs. The previous year, the increase had been 3.6 percent. According to experts, growth is likely to slow further in the future.
By 2028, the market for (entertainment) media, which includes internet offerings, music and radio, newspapers and magazines, online media, television, video games and virtual reality, will only see average annual growth of 1.1%. This is the conclusion reached by PwC in its latest Swiss Entertainment & Media Outlook" survey.
On the one hand, the experts blame inflation and the higher cost of living for this slowdown. On the other hand, the so-called "post-Covid effect" is diminishing.
However, the pessimistic forecast does not apply equally to all sub-segments of the industry. Cinema, for example, has recovered from the coronavirus pandemic and grew by a good quarter in 2023. In addition, the high level of streaming has boosted sales of video, music and radio.
On the other hand, newspapers, books and consumer magazines were among the biggest losers. Linear television is also likely to experience a decline.
According to the report, virtual reality (VR) and artificial intelligence (AI) achieved the strongest growth in 2023 with an increase of 36.4% to CHF 161 million. The authors also forecast a significant increase in the coming years. Bogdan Sutter, Director Strategy and Digital Change Expert at PwC Switzerland, is quoted in the press release as saying that turnover will almost double by 2028. (SDA/swi)
