© Reuters. The entertainment sector will bill 35,000 million in 2027, 25% more than in 2022
Madrid, Oct 18 (.).- The entertainment and media sector in Spain will bill 35,011 million euros in 2027, 25% more than in 2022, thanks to the boost from advertising and artificial intelligence (AI), according to a report published this Wednesday by the consulting firm PwC.
This market will experience an equivalent compound annual growth rate (GAGR) of 4.6% between 2022 and 2027, above the global industry, which will grow on average 3.6% each year until reaching a turnover of 2. 8 trillion dollars (about 2.7 million euros) in 2027.
Within the sector, the market for over-the-counter (OTT) platforms in Spain, which encompasses the business of companies such as Netflix (NASDAQ:) or Prime Video, will experience average annual growth of 9.3% between 2022 and 2027, until reach 1,689 million in this last year.
After an increase in demand due to the coronavirus pandemic, the report has indicated that these platforms have begun to bet on offering “cheaper” subscription plans that incorporate ads in the content, to combat the decline in subscribers suffered at the beginning of this year. .
In fact, advertising revenue on these platforms will grow on average by 11.5% each year until 2027, when it will reach 221 million; compared to the 9.4% increase in revenue from video subscriptions (SVOD), up to 1,410 million; or the 1.1% increase in video on demand (TVOD) transactions, up to 59 million.
For its part, the Spanish Internet advertising market will reach 5,634 million in 2025, with a compound annual growth rate of 5.8% over five years.
By category, video advertising will grow 10.6% each year, up to 1,465 million; search, 4.5%, up to 1,966 million; display, 4.3%, up to 1,831 million; and classifieds, 3.9%, up to 372 million.
Video games continue their rise
The video game industry in Spain, which had a turnover of 2,081 million in 2022, will reach 2,688 million by 2027, with an average annual increase of 5.3%.
Although the sector has been affected by the semiconductor crisis and the global chip shortage, PwC has anticipated “moderate” growth in all areas of the video game market, except for console games, where a constant decrease of 3%.
On the other hand, the report predicts that the total revenue generated by virtual reality will reach 196 million in 2027, an annual growth of 24.9%, while the turnover of electronic sports will increase at an average rate of 11, 9%, up to 63.6 million in 2027.
As for cinema, the industry is expected to exceed pre-pandemic turnover levels (615 million in 2019) in 2027, with an annual growth of 11.9%, up to 705 million.
Finally, the study indicates that other “traditional” sectors will have more moderate growth or will lose size in this period, with average annual increases in the music sector (3.7%), radio and podcasts (1.3%). and the book industry (0.7%), while the turnover of magazines (1.5%) and newspapers (1.4%) will decrease.
2023-10-18 12:41:45
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