Seizing growth opportunities in a dynamic ecosystem

Generally, the well-proportioned branch ship seems to sail on calm waters. But the plane is lifted by waves and deep recesses every day, and dangerous shoals and reefs hide everywhere. Disruptions that unleash opportunities and dangers continue to plague the industry. As we enter a world dominated by digital ecosystems, the linear chain of price creation is breaking down. The content boom, fueled by the rapid rise of streaming, has stalled. Generative artificial intelligence promises not only to ensure increased productivity and production, but also to launch new ways of doing business in all sectors of the economy and in between. All this is leading to widespread uncertainty. In PwC's 27th CEO sample survey, 57% of E& M CEOs said that in 10 years' time, their current business path will no longer be sustainable, compared to 45% of CEOs across all companies.

The good news? By 2028, E& M industry members will receive an additional $597 billion, compared to 2023. And the key to capturing a share of this expanding profit pool is business model restructuring (BMR). BMR is not just a "twist" to increase margins by a certain basis points or to increase upside. It requires an urgent rethinking of how business value is created, delivered and captured. This means fundamentally changing how companies raise capital, serve customers and operate in regions and business sectors where growth is accelerating.

PwC's Global E& M Opportunities 2024-2028 serves as a dilettante's compass to navigate the coming years. It is a comprehensive, foundational guide to sectors and markets that are likely to grow, areas to tap and areas to drown. As companies rethink their business models, they will literally need to determine in which sectors and subsectors new profit generators will emerge. We have focused on four key areas of opportunity.

Opportunity #1: Advertising

It is becoming increasingly difficult to stop the growth of profits by selling E& M directly to users. Of the three main categories, consumer costs, association costs and advertising costs, consumer costs are considered to be the smallest and are rising gradually. By 2023, associated costs, i. e. the costs that people actually pay for fixed and mobile telecommunications proposals, will reach US$1. 1 trillion. By 2023, it will be US$1 trillion. Until 2028, this category will remain the most solid category and will not become too prominent, as people are still ready to spend a lot to ensure access to everything, it actually has the ability to provide the E& M industry. (Note: This year, the report and forecast data on take-ups are higher than in previous versions of Outlook. The definition has been expanded to link all profits from proposals reported by the coolest players in the industry from attributable profits from proposals). But the real situation of the increasing and huge skill is associated with how much companies are ready to pay to reach the buyer, be it phone, games, travel or e-commerce websites. According to monitoring, the amount of advertising that exceeded consumer costs in 2023 will reach $ 1 trillion in 2026, growing by 6, 7% in annual calculations until 2028.

As a strategic rationale, all members of the E& amp; amp; amp; MP industry need to become more experienced in reselling advertising and freeze it more effectively to stimulate the interests of all ecosystem participants. The composition of the layout for the marketing activities of companies will be made in three main areas: data revenue on data will promote the development of more difficult marketing models. A closer connection will be noted between the publication of goods and offers and their purchase or use. And companies will have to understand how the generally recognized large-scale confidentiality measures will affect the increase.

Not only covers restricted marketing budgets and adjustments that do not pay attention to the negative moments, but also preserved geopolitical and financial turmoil in 2023, the rise of Internet advertisements. It is 10 or 1 % to actually increase the profit of $ 52, $ 500 million. Subsequently, an annual calculation of 9 or 5 % of the annual calculation up to 2028 accounts for 77 and 1 % of all marketing costs. According to monitoring, Bulk falls under the umbrella of the Internet advertising, out of the 10 Outlook components, which will show the most active increase in the direction of the predicted period. Retail/ Other Display Internet Advertising is thought to have been performed on no n-format hosts on applications and retailers websites. The pool is a more advanced electronics trading market, like the United States, which increases 31. 7 billion in 2028 in 2028 to compare $ 11. 9 billion in 2023. Increases to all high speeds.

Such an enlarged formation of advertising profit focuses on other E & AMP; MP; Market players, and can measure the distribution on the TV screen. It will be a necessary moment to fuel the increase. It is also expected to double the size of advertisements on the attached TV (CTV) provided during video programs -$ 2023 to $ 41. 2 billion in 2028. The retail media market players are trying out shopping TV ads more often so that customers can purchase products directly from television and video ad s-this possibility is American Retail in February 2024. He emphasizes that he acquired a smart TV maker. When more and more buyers switch from regular television to user content, and advertisers, it is likely that they will use a layout that exceeds the range of 30 or 15 seconds roller to trace the footprints of this movement. 。 This has the potential to connect to the introduction of new technologies that can create more expensive recruitment of influencers, proposals experienced promotions, and create creative messages.

2nd: < SPAN> Covered restricted marketing budgets that do not pay attention to the negative moment, not only considering adjustments, but also preserved geopolitical and financial confusion in 2023. Internet advertisements are actually 10 or 1 % to increase the profit of $ 52, $ 500 million. Subsequently, an annual calculation of 9 or 5 % of the annual calculation up to 2028 accounts for 77 and 1 % of all marketing costs. According to monitoring, Bulk falls under the umbrella of the Internet advertising, out of the 10 Outlook components, which will show the most active increase in the direction of the predicted period. Retail/ Other Display Internet Advertising is thought to have been performed on no n-format hosts on applications and retailers websites. The pool is a more advanced electronics trading market, like the United States, which increases 31. 7 billion in 2028 in 2028 to compare $ 11. 9 billion in 2023. Increases to all high speeds. Rethinking business models

Such an enlarged formation of advertising profit focuses on other E & AMP; MP; Market players, and can measure the distribution on the TV screen. It will be a necessary moment to fuel the increase. It is also expected to double the size of advertisements on the attached TV (CTV) provided during video programs -$ 2023 to $ 41. 2 billion in 2028. The retail media market players are trying out shopping TV ads more often so that customers can purchase products directly from television and video ad s-this possibility is American Retail in February 2024. He emphasizes that he acquired a smart TV maker. When more and more buyers switch from regular television to user content, and advertisers, it is likely that they will use a layout that exceeds the range of 30 or 15 seconds roller to trace the footprints of this movement. 。 This has the potential to connect to the introduction of new technologies that can create more expensive recruitment of influencers, proposals experienced promotions, and create creative messages.

2nd: Covered restricted marketing budgets that do not pay attention to negative moments, not only considering adjustments, but also preserved geopolitical and financial turmoil in 2023, Internet advertising. The rise is 10 or 1 % to actually increase the profit of $ 52, $ 5 billion. Subsequently, an annual calculation of 9 or 5 % of the annual calculation up to 2028 accounts for 77 and 1 % of all marketing costs. According to monitoring, Bulk falls under the umbrella of the Internet advertising, out of the 10 Outlook components, which will show the most active increase in the direction of the predicted period. Retail/ Other Display Internet Advertising is thought to have been performed on no n-format hosts on applications and retailers websites. The pool is a more advanced electronics trading market, like the United States, which increases 31. 7 billion in 2028 in 2028 to compare $ 11. 9 billion in 2023. Increases to all high speeds.

Such an enlarged formation of advertising profit focuses on other E & AMP; MP; Market players, and can measure the distribution on the TV screen. It will be a necessary moment to fuel the increase. It is also expected to double the size of advertisements on the attached TV (CTV) provided during video programs -$ 2023 to $ 41. 2 billion in 2028. The retail media market players are trying out shopping TV ads more often so that customers can purchase products directly from television and video ad s-this possibility is American Retail in February 2024. He emphasizes that he acquired a smart TV maker. When more and more buyers switch from regular television to user content, and advertisers, it is likely that they will use a layout that exceeds the range of 30 or 15 seconds roller to trace the footprints of this movement. 。 This has the potential to connect to the introduction of new technologies that can create more expensive recruitment of influencers, proposals experienced promotions, and create creative messages.

2nd:

The world of streaming broadcasting, which has been attracting attention in recent years, has brilliantly reflected the industry's problems. The use and consumption of basic proposals has continued to increase, although the pace has fallen in recent years. However, it is becoming increasingly difficult for companies to pay more for digital products and services. As the number and type of streaming services increases in the market, overdetors occur. OTT video services have increased from 1. 6 billion in 2023 to 2. 1 billion in 2028, equivalent to 50%a year. However, the global average income of OTT videos is almost the same. In 2028, the US $ 65, 21 will be $ 67, 66 in 2028.

With the plateau effect, major streaming distribution companies have already been forced to rebuild business models and are looking for new sources other than subscriptions. Three European and American companies in the streaming field (Disney +, Netflix, Amazon Prime Video) have announced the "hybrid tier" that provides advertising funds. Many small or local players are following this in many markets around the world. The introduction of advertising options includes other measures to increase income, from password measures to investment in "Express" content such as sports broadcasts to attract the subscriber and the advertiser. Many.

As the growth of subscription income has slowed down, advertising revenue (AVOD) around the world will continue to double until 2028 (5 years of CAGR is 14, 1 %). The advertising revenue, which was 20 % in 2023, will account for about 28 % of the world's streaming broadcast income in 2028. < SPAN> The world of streaming broadcasting, which has been attracting attention in recent years, reflects the problem of the entire industry. The use and consumption of basic proposals has continued to increase, although the pace has fallen in recent years. However, it is becoming increasingly difficult for companies to pay more for digital products and services. As the number and type of streaming services increases in the market, overdetors occur. OTT video services have increased from 1. 6 billion in 2023 to 2. 1 billion in 2028, equivalent to 50%a year. However, the global average income of OTT videos is almost the same. In 2028, the US $ 65, 21 will be $ 67, 66 in 2028.

With the plateau effect, major streaming distribution companies have already been forced to rebuild business models and are looking for new sources other than subscriptions. Three European and American companies in the streaming field (Disney +, Netflix, Amazon Prime Video) have announced the "hybrid tier" that provides advertising funds. Many small or local players are following this in many markets around the world. The introduction of advertising options includes other measures to increase income, from password measures to investment in "Express" content such as sports broadcasts to attract the subscriber and the advertiser. Many. Gaming

As the growth of subscription income has slowed down, advertising revenue (AVOD) around the world will continue to double until 2028 (5 years of CAGR is 14, 1 %). The advertising revenue, which was 20 % in 2023, will account for about 28 % of the world's streaming broadcast income in 2028. The world of streaming broadcasting, which has been attracting attention in recent years, has brilliantly reflected the industry's problems. The use and consumption of basic proposals has continued to increase, although the pace has fallen in recent years. However, it is becoming increasingly difficult for companies to pay more for digital products and services. As the number and type of streaming services increases in the market, overdetors occur. OTT video services have increased from 1. 6 billion in 2023 to 2. 1 billion in 2028, equivalent to 50%a year. However, the global average income of OTT videos is almost the same. In 2028, the US $ 65, 21 will be $ 67, 66 in 2028.

With the plateau effect, major streaming distribution companies have already been forced to rebuild business models and are looking for new sources other than subscriptions. Three European and American companies in the streaming field (Disney +, Netflix, Amazon Prime Video) have announced the "hybrid tier" that provides advertising funds. Many small or local players are following this in many markets around the world. The introduction of advertising options includes other measures to increase income, from password measures to investment in "Express" content such as sports broadcasts to attract the subscriber and the advertiser. There are many.

As the growth of subscription income has slowed down, advertising revenue (AVOD) around the world will continue to double until 2028 (5 years of CAGR is 14, 1 %). The advertising revenue, which was 20 % in 2023, will account for about 28 % of the global streaming broadcast income in 2028.

The business model overhaul taking place in the OTT space also includes a wave of consolidation and rationalization. India’s Disney+ Hotstar was launched in 2020 after Disney acquired 21st Century Fox’s parent Star India. After a difficult few years, in February 2024, Disney+ Star India inked a merger deal with Reliance Industries conglomerate’s Viacom18, which owns the larger Jio OTT platform, for USD 8. 5 billion. The fragmented Indian OTT market is expected to be the fastest growing in the world over the next five years, reaching USD 4. 3 billion in total revenue by 2028. The country has around 101 million paying subscribers and 58 OTT platforms, about half of which are regional players operating in local languages. KP, Warner Bros. Discovery to open GCC (Global Capability Center) in Hyderabad in September 2023.

Content Focus

Chinese OTT consumers subscribe to channels individually and do not pay subscription fees for the whole family. For example, they subscribe to dramas and pop shows in the first window. Exciting programs can surge the number of subscribers and increase the cost of streaming share. One such content that has had such an effect this year is Tencent's drama "Blooming Shanghai." The first TV series by renowned director Vong Karvaja not only attracted new subscribers but also introduced more than 200 commercials, contributing to the development of Shanghai tourism. High-growth geographies and segments

Meanwhile, in developed markets, a different form of consolidation is taking place. As customers do not want to extend their subscriptions indefinitely, major companies are gradually reviving cable offerings. In the US, Disney and Warner Bros. Discovery United are offering a Disney+-Hulu-Max package, while Disney, WBD and Fox Corp. have launched a direct sports broadcast package called Venu Sports. Comcast offers Stream Saver, Unite Peacock, Netflix and Apple TV+ to its TV subscribers and broadband access. And, quite uncharacteristically, we are starting to see the first signs of owner/manufacturers turning back to potential licensing deals with streaming competitors to reap further benefits.

Opportunity #3:

The global craze for gaming continues to drive revenues, even as companies that boomed during the Covid era cut back on staff. Global revenues from video games, including esports, are still a very small component, but they will grow 4. 6% to $227. 6 billion by 2023. It is one of the fastest-growing major segments of the E& M industry, with sales expected to exceed $300 billion in 2028, more than double from 2019 levels. Although annual growth rates will slow as the segment matures, by 2028 gaming will account for 9% of the total E& M industry.

Historically, video game revenues have been dominated by subscriptions and game purchases. But advertising is becoming increasingly important. Of the two largest revenue sources, in-app social/regular gaming revenues ($82. 9 billion) narrowly surpass in-game advertising ($720. 4 billion). In 2028, in-app advertising revenue will reach $147. 9 billion, up 15. 4% year-on-year, and in-app advertising revenue will reach $106. 6 billion, up 5. 15% year-on-year. By 2028, social/casual games will account for more than three-quarters of the global video game and e-sports market.

The gaming sector is a global business. However, gaming culture and the business models that support it vary considerably from country to country. The largest region in the world for total video game and e-sports revenue is Asia-Pacific. (The Asian Games in Hangzhou in fall 2023 will feature esports as an official medal event for the first time). In 2023, video game revenue in the region will be approximately $109. 6 billion, accounting for 48. 1% of the global total for the sector. In 2028, gaming revenue in the region will reach $181. 8 billion, or 54. 4% of the total.

A new driver of reinvention: Generative AI

The major regions are not monolithic. In the Asia-Pacific region, Indonesia's total video game and esports revenue is expected to grow by 16. 0% through 2028, making it the third fastest growing video game market (tied with Pakistan). The Indonesian government is actively supporting the development of the video game industry in the country, seeking to help it overcome challenges in terms of funding, talent, infrastructure, and regulations. In Japan, where video games are hugely popular among all ages, the industry benefits from its close relationship with traditional Japanese anime, which has a growing audience around the world.

As the game section passes, the investment in fresh products, new technologies, and new business models will increase. Nintendo is likely to release the appropriate generation of its famous switching console in 2025. In order to appeal to younger people, each company bet on more attractive general and mass games. And in February 2024, Disney and Epic announced an agreement on general work to build an ecosystem that covers the world of Fortnight, Pixar, Marvel, and Star Wars.

Chance 4:

A huge reserve army to increase rescue exists in two major fields: fields that are already considered large, relatively agile, and relatively small, and are very agile. 。 For many major players, some market issues are considered to have low population purchasing power.

By 2023, the United States, whose mass cost exceeds 30 %, has unified advertising markets and consumer costs, keeping the world's coolest e & amp; amp; AP; M. However, since this scale is gaining maturity, according to monitoring, a relatively gentle rise of 4, 3 % a year until 2028 is actually delaying 4, 6 % global indicators.