PWC study: Paywalls do not work
Although most segments of the industry grew last year, consumer magazines, newspaper publishers, and entertainment films are struggling with declining revenues. In the advertising market, mobile and interactive solutions are the key to success.
The challenges facing the industry and new payment models are revealed in the study "Swiss Entertainment and Media Outlook 2014-2018" by PWC Switzerland. Consumers want flexibility in terms of location, channel and end device. They want to be able to consume all content on all devices at any time. 77 percent of the Swiss own a smartphone: Mobile solutions are therefore the key to success.
Paywalls do not work
Online content is and will remain free. Many providers have introduced paywalls, but consumers do not accept this. Newspaper publishers in particular are therefore looking for new business models. "Pay with a Tweet", whereby the consumer receives desired products if he writes a tweet about them, or "bundling", whereby content from different channels on the same topic is sold in one package, are currently very popular.
"Mobile First" is the motto
Interactive and mobile: These are the buzzwords for the media and entertainment industry. Consumers spend 52 percent of their time with digital media on mobile apps. This opens up enormous opportunities for mobile campaigns, as target groups can be very clearly defined and individualized thanks to data analytics. Spending on mobile advertising will crack the CHF 100 million mark for the first time in 2014. "Interaction with users instead of mere distribution of content: This is indispensable for a successful business model today. Interactive television and new types of content specially developed for mobile devices will continue to change the television landscape," explains Bogdan Sutter, Head of Digital Transformation at PWC Switzerland.
Streaming is the future
Increasingly, it is not content that is being sold online, but access to it. The music market demonstrates this most clearly: Already in 2012, digital music revenues were CHF 21 million higher than revenues from physical products. "This trend will continue," says Patrick Balkanyi, Partner and Industry Leader Technology, Telecommunications, Infocomm and Media at PWC Switzerland.
The "Global Entertainment and Media Outlook 2014-2018" (www.pwc.com/outlook) is considered the source of the "Swiss Entertainment and Media Outlook 2014-2018". An access code to the Swiss content of the Outlook can be obtained via [email protected] be obtained.
