Digital media make the cash registers ring
A new PwC study predicts a bleak future for non-digital media content. Digital media, on the other hand, is raking in the cash.
Digital media continues to drive revenues in the media and entertainment industry in Switzerland. Spending on non-digital content will continue to decline sharply through 2017. Mobile Internet access will become just as important as the cable connection. The growth rate for digital products will be 15.1 percent by 2017. This is shown by the study "Swiss Entertainment & Media Outlook 2013" by PWC. The biggest growth drivers in the entertainment and media industry continue to be digital media. The authors of the study expect spending on digital products to increase by 15.1 percent by 2017. At the same time, those for analog products will fall by 2.6 percent.
Growth of mobile Internet access
The strong growth of mobile Internet access is linked to the success of smartphones and tablets. In the future, mobile Internet will be just as important for consumers as Internet access with a cable connection. Globally, revenues from mobile Internet access will exceed those from cable connections in 2017. "We estimate that this will already be the case in Switzerland in 2015. Here, the market is almost saturated today," explains Patrick Balkanyi, Partner and Industry Head Technology, Telecommunications, Infocomm and Media. The number of mobile Internet subscribers will rise to 10.4 million in Switzerland by 2017.
Analog is out
The music industry is also moving in the same direction: buyers are consuming music digitally. "The question here is how digital products will be priced in the future. Digital products usually have a lower price than physical ones," says Bogdan Sutter, Head of Digital Transformation. The issue of piracy will also become more acute.
Second-screen applications offer new possibilities
The number of consumers who use multiple devices at the same time - for example, surfing with a tablet while watching TV - is rising. These so-called second-screen applications make it possible to serve advertising in a more targeted and personalized way. The various devices are linked by IP address, so advertising from the same sender appears on both devices.
Print products on the decline
Sales of analog media, such as newspapers or consumer magazines, continue to decline. Revenues for printed products will fall by CHF 89 million over the next three years. In the same period, digital circulation will increase by 69.5 percent. Newspapers and magazines are consumed online. Therefore, the major publishing houses need to introduce innovative business models.
