Global spending rose 5.4 percent in 2014, up from the 5.2 percent increase in 2013, but lower than the gains recorded over the 2009-2012 period, during which spending increased at a 6.2 percent compound annual rate. We project spending over the next five years to expand at a 5.1 percent CAGR, continuing the overall slowdown.
We expect digital advertising, video games, and broadband to continue to be the fastest-growing segments over the next five years, with projected compound annual increases to 2019 of 12.7 percent, 8.1 percent, and 7.8 percent, respectively. Cinema will expand at a projected 5.4 percent CAGR, followed by TV advertising at 5.0 percent and out-of-home at 4.9 percent, with in-home video entertainment next at 3.4 percent compounded annual growth. Audio entertainment, educational publishing, and consumer books will grow at compound annual rates of 2.0 percent or less, while consumer magazines and newspaper publishing will each be somewhat lower in 2019 than in 2014.
While the stronger segments today will continue to be strong over the next five years, we expect that the faster-growing segments in 2014 will grow more slowly over the forecast period. Simultaneously, the slower- growing or declining segments in 2014 will either grow more quickly over the next five years or decline at slower rates.
Total global media spending will rise from US $1.6 trillion in 2014 to a projected US $2.1 trillion in 2019, a 5.1 percent compounded annual increase.
The M&E industry, which has been traditionally dominated by print & television, is slowly witnessing the emergence of new media platforms such as gaming, digital advertisement and animation that represents a new dimension in the industry’s evolution. This trend is clearly in line with the changing demographics of the country that are leading to content consumption through the emerging media format, which in turn is leading to strong investor interest.
Backed by strong thought leadership and industry knowledge, KPM ASSET offers deep understanding of the various business drivers in the industry, and leverages its extensive relationships with industry players and media-focused funds to deliver value to our clients.
