The Shiny New Entertainment Landscape: Where AI Meets Streaming!
Ah, the sweet sounds of Spain, where the only thing growing faster than the entertainment industry are the players in the OTT gaming arena! PwC, the number crunchers extraordinaire, just released their predictions for the entertainment and media (E&M) sector in Spain, and what do we find? A solid growth forecast of 2.6% until 2028, reaching a whopping €42.9 billion! Sounds like a great time to launch that Netflix-inspired shoe-washing service, right?
Netflix and Friends: OTT Platforms are Taking Over!
Oh yes, it seems like Netflix, Prime Video, and Disney+ are not just binge-watching our lives—they’re about to binge-watch traditional TV right off the charts! By 2026, these OTT platforms are expected to dominate revenue generation, outpacing conventional TV for the first time. Forget about ordinary viewing experiences; in the future, we’ll be asking, “Did you finish *Sandman* or just fall asleep during *The Crown* again?”
Competition, Competition Everywhere!
Manuel Villanueva from Mediaset was oh-so-wise when he said: “The competition is not just between chains, but with digital platforms.” You can say that again! It’s as if traditional television is in a cage match with a supercharged streaming monster, and let’s just say, traditional TV forgot to do its cardio. At this rate, someday your grandma might log onto Netflix to check her soap operas. What a plot twist!
Podcast Powerhouses & Digital Domination
And don’t even get me started on radio! Who knew our good ol’ radio waves would be making such a comeback? Ramón Osorio from AtresMedia Radio claims that podcasts and digital stations are the new black. I guess radio is taking notes from fashion week, trying to stay relevant and trendy. “We’re still here, we promise!” it seems to say.
Artificial Intelligence: The Wondrous Wizard of Oz
Patricia Manca from PwC pointed out that “Generative AI is no longer a future promise.” Well, well! Looks like AI is not just for making uncanny valley humans and writing dad jokes. It’s transforming content creation, optimizing processes, and honestly, it might even help you find that perfect show to binge next while keeping track of your cat’s Instagram.
A Glimpse at Global Growth
Worldwide, the E&M industry is growing at 3.9% annually—outpacing global GDP! It’s like a kid who can’t stop winning at musical chairs—nobody knows how, but we just know it’s going to leave us all standing awkwardly in the corner. The industry is projected to reach a staggering $3.4 trillion by 2028. I mean, if you thought inflation was bad, wait until you try and book a pay-per-view event at that rate!
Video Games and VR: The Real Champs!
Meanwhile, video games and virtual reality hold center stage, generating €2.1 billion in 2023 and continuing to expand faster than my waistline after lockdown! With a robust growth rate, VR is quickly becoming the cool kid at the party, and sometime soon your grandma might get her first headset—not to start playing games but to finally understand TikTok!
Print Isn’t Dead (Yet)
Speaking of death, let’s talk publishing. The traditional book market is growing at a “modest” rate—and when I say modest, I mean like a 93-year-old lady quietly insisting that she’s “still got it” at bingo night. Print reigns supreme, despite the e-book surge that’s got digital files flying off the virtual shelves faster than you can say “one-click purchase.”
Optimism in the E&M Sector!
But hang on! There’s optimism on the horizon! With all this disruption and upheaval, the sector is proving it’s as resilient as a rubber band. With influential figures stating that it’s all about adaptation and innovation, it feels like the entertainment industry is prepping for a massive glow-up. It’s like when your friends get a makeover and suddenly you realize you’re no longer the ‘funny one’—you’ve become ‘the one who needs to catch up’!
In Closing: A Flourishing Future
We’re in an era of recovery marked by transformation in the entertainment sector—just like how everyone transformed into a DIY expert during the lockdowns! Whether it’s streaming, publishing, or even podcasting, there’s an enticing promise of growth, innovation, and sustainability. So buckle up, folks! The entertainment and media rollercoaster is just getting started, and with AI driving the next loop-de-loop, it’s bound to knock our socks off! And while you’re at it, keep one eye on those streaming subscriptions—you’ll thank me later!
PwC provides an in-depth analysis of Spain’s audiovisual, audio, and publishing sector: According to the latest findings in the 25th edition of the Entertainment and Media Outlook 2023-2028 report, prepared by PwC, the entertainment and media (E&M) industry in Spain is projected to achieve a growth rate of 2.6% through 2028, culminating in an impressive turnover of 42,907 million euros.
The rise of Over The Top (OTT) video platforms, including popular services like Netflix, Prime Video, and Disney+, is revolutionizing the market landscape. By 2026, revenue generated by the OTT segment is expected to outpace that of traditional television.
Manuel Villanueva from Mediaset emphasizes the evolving nature of competition within the industry: “The competition is not only between traditional channels, but also with formidable digital platforms that are reshaping audience interaction.
Ramon Osorio, Director General of AtresMedia Radio, notes the dramatic rise of podcasts and digital radio stations, which signifies a diversification in content consumption. “The evolution of radio is evident; far from diminishing, it has effectively integrated into the digital ecosystem, allowing us to connect with younger audiences,” he stated.
The global E&M industry is set to expand at an annual rate of 3.9%, confirming its substantial impact on the international economy and outpacing worldwide GDP growth. PwC’s comprehensive study, Entertainment and Media Outlook 2023-2028, elaborates on both global and local sector trends and identifies artificial intelligence (AI) as a crucial driver that will significantly enhance content creation, productivity, and innovative revenue avenues.
Manuel Martin Espada, who oversees Markets and Clients at PwC Spain, pointed out the transformative effects of AI in the industry.
The emergence of AI: a powerful catalyst for change
During the report’s presentation, Patricia Manca, who leads the Entertainment and Media sector at PwC Spain, remarked: “Generative AI has evolved from being merely a future prospect to a present-day reality that’s reshaping industry dynamics. When these innovative tools optimize processes while enhancing consumer experiences, the potential for growth becomes even more pronounced.”
This in-depth report underscores that AI is poised to not only streamline the content generation process but also empower companies to offer personalized experiences, boost distribution efficiencies, and explore dynamic business opportunities.
OTT: the rising titan in entertainment
One of the key insights from the report indicates the meteoric rise of OTT (Over The Top) video platforms such as Netflix, Prime Video, and Disney+. It is estimated that by 2026, the OTT sector will outstrip conventional television in terms of revenue, amassing 3,303 million euros compared to traditional TV’s forecasted 3,206 million euros. Furthermore, the OTT segment is anticipated to continue its robust growth trajectory, expanding at an impressive annual rate of 8.5%, driven by an influx of premium content and regular new releases.
The Spanish market for internet advertising is forecasted to experience remarkable growth, with an annual increase of 7.3%, projected to reach a total turnover of 6,521 million euros by 2028. Such an increase demonstrates the solidification of the digital landscape as the foremost channel for advertisers seeking to connect with audiences.
Video games and virtual reality take center stage
The video game industry, which generated a substantial 2,142 million euros in 2023, is on the cusp of ongoing expansion, projected to grow annually by 5.4%. Notably, in-game advertising is on track for exceptional growth, with figures estimated to reach 549 million euros in 2028, marking an impressive annual increase of 17.4%.
Concurrently, the virtual reality (VR) sector is poised for substantial revenue growth, with projections estimating an increase from 49 million euros in 2023 to 87 million euros in 2028, driven by the rising popularity of gaming and video applications in this innovative format.
Insights from the publishing sector and other traditional media
Highlighting a significant trend, the report illustrates how traditional media entities are actively reinventing themselves. Although the growth rate for the book industry is modest at 0.98% annual, digital content like electronic books is expected to record considerable expansion, growing 5.54% annually. Printed books, however, continue to dominate the market, commanding an impressive 93.3% of total revenue in 2023.
Revenue generated from streaming music is expected to reach 407 million euros by 2028, while the listener base for podcasts is projected to exceed 25 million in the same period, solidifying their status as a vital emerging medium.
The global sector regains balance
On a global scale, the Entertainment and Media industry has regained its footing, stabilizing in 2023 post-pandemic and demonstrating a notable growth of 5%, with total revenues climbing to a substantial 2.8 trillion dollars. By 2028, this growth is projected to escalate, driven by disruptive technologies such as AI, reaching an anticipated 3.4 trillion dollars.
A sector characterized by optimism and resilience
During the presentation event, notable industry figures like Manuel Villanueva (Mediaset España), Ramón Osorio (AtresMedia Radio), and Laura Múgica (Editorial Unit) emphasized a prevailing sense of optimism within the sector. “Despite the myriad challenges and ongoing technological disruptions, traditional media are showcasing resilience and an unwavering capacity for innovation,” was a common sentiment echoed throughout the discourse.
The report, Entertainment and Media Outlook 2023-2028, underscores that the entertainment and media sector not only serves as a driving economic engine but also as a transformative force in an era defined by rapid change.
Audiovisual segment: challenges and opportunities
Manuel Villanueva, General Director of Content at Mediaset España, emphasized the ongoing adaptation of television as it navigates the competitive landscape, characterized by the rise of streaming platforms and artificial intelligence. “Competition extends beyond traditional chains; it encompasses digital platforms, compelling us to innovate continuously to resonate with audiences,” he articulated.
Alberto Gutierrez, Director of Entertainment and Media at PwC Spain, shed light on the revolutionary impact of generative AI in the audiovisual landscape, mentioning its role in personalizing user experiences. “While we witness acceleration in content production and distribution, the paramount challenge remains maintaining quality and consumer trust,” he added.
Audio in the digital age
Representing the audio segment, Ramón Osorio from AtresMedia Radio highlighted the significant growth of podcasts and digital broadcasting as pivotal factors in diversifying user consumption habits. “Radio’s ability to adapt within the digital ecosystem underscores its continued relevance despite generational shifts,” he remarked.
Patricia Manca reiterated how personalized data and technology are redefining the relationship between broadcasters and audiences; “Artificial intelligence and algorithms empower us to glean deeper insights into audience preferences, leading to the delivery of more tailored and relevant content,” she noted.
Editorial segment: resilience and credibility
In the publishing domain, Laura Mugica, General Director of Unidad Editorial, addressed the challenges posed by digital disruption. “The journey of digital transformation is ongoing; our unwavering commitment is rooted in credibility and journalistic integrity amid an information-saturated environment,” she stated.
Vanesa González Prieto, partner responsible for the Telecommunications sector at PwC Spain, stressed the increasing importance of sustainability and technological innovation in the publishing sector’s evolution. “AI not only enhances operational processes but also empowers media to reach untapped audiences through more engaging formats,” she remarked.
Closing: “A transformative moment that brings unique opportunities”
Daniel Martinez, partner overseeing the Telecommunications, Media, and Entertainment Sector at PwC Spain, underlined the prevailing optimism in the industry. “We find ourselves in a transformative moment that beckons unique opportunities for television, radio, and print media. The crux lies in our ability to adapt to emerging technological advancements and evolving consumer expectations,” he concluded.
#PwCEntertainmentandMediaDaniel Martínez, partner responsible for the Telecommunications, Media and Entertainment Sector at PwC Spain, “We are in a moment of recovery and transformation that presents unique opportunities for television, radio and the press” pic.twitter.com/tS4kuFcRwt
— Advertising Program (@progpublicidad) November 25, 2024
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How does the resilience of Spain’s publishing sector impact content quality and audience trust in the digital landscape?
Furthermore, the report’s findings underscore the importance of adapting to new consumption patterns and the necessity for traditional publishers to innovate while maintaining their core values. The resilience shown by the publishing sector reveals a commitment to navigating the complexities of the digital landscape while ensuring content quality and audience trust remains paramount.
Conclusion: The future of Spain’s entertainment and media landscape
Spain’s entertainment and media industry is at a pivotal moment, marked by the convergence of traditional media, digital innovation, and evolving consumer behaviors. As the sector anticipates steady growth through 2028, with AI and OTT platforms leading the charge, it is essential for stakeholders to embrace change and invest in adaptive strategies. This will not only enhance audience engagement but also reinforce the industry’s role as a cornerstone of the economy, continuing to drive forward in an era rich with opportunities and challenges.