PWC Forecasts Entertainment and Media Market

<div class="block">Cheddar News senior reporter spoke to C.J. Bangah, principal at PWC, about the global media and entertainment outlook. The company just released its annual report, forecasting the state of the industries through 2027.</div>

Closing Bell

We're also getting new insight into the future of the entertainment business from PWC, which released its global entertainment and media outlook at Can Lion this week. Jet News is senior reporter Michelle Castillo joins me now with insight uh Michelle, what can you tell us about these findings? Founding firm PWC has found that the global media market is growing despite economic headwinds and it will continue to grow over the next several years from this year through 2027. PWC is projecting the industry will grow from $2.3 trillion to $2.7 trillion. While overall things will be on the up and up, it might not be as fast as they were expanding in the past. So take something like over the top or O TT uh streaming growth. For example, it had a 20 to 30% growth rate year over year and PWC thinks it's gonna slow down quite a bit. On the other side, advertising revenue will help dwindling subscription numbers, especially video game advertising. So that is expected to grow 22% over the next four years for movie theaters, Michelle. Well, the good news is we're going to be bouncing back to pre pandemic, global box office revenue in the next few years. PWC, Principal CJ has more. The drivers of this really tie to cinema is still a very, you know, relatively low cost entertainment experience for the average consumer. And so it just offers the opportunity to connect in person with other people live and share an experience. Cinema also is bolstered by very compelling content. We have high value movies, big picture films dominating a lot of the industry. Now global cinema revenue is expected to reach pre COVID levels by 2025. When PWC project is gonna hit $46.5 billion. But while fewer people are going to the movies, the reason why they're making that more money is because it's increased ticket sales which are still bringing in top dollar and movie theater advertising is also expected to help that bottom line. The report also highlights that in 2022 only a small number of films accounted for significant portion of the global box office revenue. So James Cameron's avatar, the Way of Water was one of three films that surpassed $1 billion last year. The other ones of course were Top Gun Maverick and Jurassic World Dominion. Now these three films alone generated $4.7 billion worldwide. And PWC says this underscores the ongoing trend of only a handful of blockbuster titles that are accounting for more than 90% or more of all revenue Michelle did PWC have any sense of the impact that artificial intelligence will have on the film industry? Well, PWC Bama thinks that A I is going to transform creativity, but she understands why people are concerned, take a listen, finding the right boundaries of using A I really intelligently and really thoughtfully and having it be in a creative tool that creatives and other people can use to make their life better, their jobs more fulfilling is really the role at play. Here. We're just so early in the A I journey that you're seeing things like being concerned that the entire job is going to be eliminated, which may be true for, for some functions. But for the vast majority of people, it's really more A I as enabler A I is an Accelerator A I is an innovation partner. She added that she believes that A I won't take your job, but the person who uses A I, they might