PWC study forecasts significant growth in the Swiss media industry
According to a recent study by consultancy firm PricewaterhouseCoopers (PWC), the Swiss media and entertainment market is set for strong growth in the coming years. According to the study, turnover in the sector will increase by around a quarter to CHF 15 billion by 2012.
According to a recent study by consultancy firm PricewaterhouseCoopers (PWC), the Swiss media and entertainment market is set for strong growth in the coming years. According to the study, turnover in the sector will increase by around a quarter to CHF 15 billion by 2012.
The lion's share of the money continues to come from traditional media such as the press, radio and television, according to the PWC study "Global Entertainment and Media Outlook", which the company published on Wednesday.
Although the online business is growing strongly, it will only generate 11 percent of revenue by 2012, estimates PWC. Today, it only accounts for 4 percent.
Worldwide, advertising revenue from the Internet would increase by 20% per year. Overall, the increase in advertising revenue for the media and entertainment industry is estimated at an average of 6% per year.
The battle for readers will have consequences for the newspaper market. Not all free papers are likely to survive, the study predicts. Only a few free newspapers would manage to generate enough advertising revenue to survive. Nowhere are free papers more popular than in Switzerland: Switzerland has the highest circulation in Europe.
The decline in traditional newspapers is continuing. Subscription figures and individual sales will continue to shrink. Price increases will not be able to fully offset this trend, according to the study. Nevertheless, it was found that the Swiss are attached to the traditional newspaper. Sunday newspapers were even able to maintain their sales figures in 2007.
The PWC media observers conclude that it is difficult to predict whether the so-called "Net Generation" of under 25-year-olds, who use digital and mobile media most naturally, will switch to more traditional media as they get older.
The lion's share of the money continues to come from traditional media such as the press, radio and television, according to the PWC study "Global Entertainment and Media Outlook", which the company published on Wednesday.
Although the online business is growing strongly, it will only generate 11 percent of revenue by 2012, estimates PWC. Today, it only accounts for 4 percent.
Worldwide, advertising revenue from the Internet would increase by 20% per year. Overall, the increase in advertising revenue for the media and entertainment industry is estimated at an average of 6% per year.
The battle for readers will have consequences for the newspaper market. Not all free papers are likely to survive, the study predicts. Only a few free newspapers would manage to generate enough advertising revenue to survive. Nowhere are free papers more popular than in Switzerland: Switzerland has the highest circulation in Europe.
The decline in traditional newspapers is continuing. Subscription figures and individual sales will continue to shrink. Price increases will not be able to fully offset this trend, according to the study. Nevertheless, it was found that the Swiss are attached to the traditional newspaper. Sunday newspapers were even able to maintain their sales figures in 2007.
The PWC media observers conclude that it is difficult to predict whether the so-called "Net Generation" of under 25-year-olds, who use digital and mobile media most naturally, will switch to more traditional media as they get older.
