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article imagePWC Forecasts Steady Advance of Digital Media

By Brandon McPhail     Jun 18, 2009 in Business
Pricewaterhouse Coopers (PWC) has published its Global and Media Outlook for 2009-2013 and the outlook is one of decline for traditional media outlets. As revenues decrease, structural change will put digital outlets at the forefront.
During the 2008 US election the Obama campaign purchased advertising space on virtual billboards for XBOX 360’s Burnout Paradise in an attempt to draw votes from a younger male demographic. PWC’s outlook shows video game and mobile advertising as the only formats that have and will continue to have a steady increase in advertising targeted to new customer behaviours.
Digital newspapers and directories will also make great gains as the market begins to pick up again in 2011. As traditional media outlets look to restructure, digital media and entertainment spending will increase by ten per cent, spending that will directly take away from spending on more traditional media sources such as print media.
PWC has identified three push factors that will fuel this paradigm shift: the current global economic downturn, consumer behaviour and advertising dollars.
Crisis fuels change and the current economic downturn has already meant the demise of hundreds of daily newspapers around the globe.
As 2013 approaches the media and entertainment landscape will become ever more fragmented as companies streamline spending to target specific audiences. As a result Television and Magazine spending will change on a market to market and country to country basis.
Since the post World War Two era Television has enjoyed an almost never ending increase in media and entertainment spending. In 1956, radio news anchor and analyst H.V. Kaltenborn stated:
There are no advantages to TV newscasting.… Pictures are a distraction. Remembering camera angles is a bother. TV news should pay more attention to intelligent discourse.
Kaltenborn's argument made logical sense in that his main assertion was that quality writing would be effected by images and superficialities. However as hinsight is 20/20 it is apparent that while writing has taken on different forms, quality persists in many non-print formats.
As televisions became mainstays in North American households throughout the 1950s, corporations that had previously spent the majority of their advertising budgets in print media began spending money on television commercials and product placement. The main shift from print and radio entertainment to television entertainment coincided with the end of the Second World War and the subsequent baby boom in Europe and North America.
While today’s global economic downturn is a completely different event than that of the Second World War and subsequent baby boom, the effect on media is the same. If necessity is the mother of invention than global crisis is the mother of entertainment and media re-invention. Those companies who fight the shift from traditional forms of media to digital formats will most likely fail.
PWC has forecasted a prosperious future in Entertainment and Media for those companies who make the shift.
E&M (entertainment and media) companies will have to commit themselves to participating actively in this industry-wide shift, or risk suffering lower growth than their competitors and ultimately possible extinction. They will have no place to hide from the remorseless digital advance
One thing that all sectors of entertainment and media share through 2011 are declines in revenue gathering or very slow inclines for some digital formats. By the end of 2011 government bailout packages across the globe, bank restructurings and corporate amalgamations will have permiated global economic systems. Digital media and entertainment will make great gains as a result making up almost one third of all media spending.
More about Pricewaterhouse coopers, Media, Economic downturn
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