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Despite the doom mongers, the media industry finds itself in generally rude health
Across the 2009-2013 period, the global media industry has continued to find room to grow despite the ever looming spectre of the financial crisis.
The advertising sector has been particularly susceptible to austerity as companies have continued to cast a critical eye across their costs, looking to wield the dreaded “cutback” scissors, asking themselves “do we really need to spend X amount on advertising when we can do a lot of it in-house?” Cue that competitive threat to seemingly every industry on the planet, Google and its AdWords service, not forgetting of course that interminable buzzword/phrase, social media marketing.
Similarly, customers have been forced to reassess their outgoings in the face of dwindling disposable incomes, asking themselves questions such as whether that cable TV package with a thousand channels, including the exclusive Knitting Channel, is really essential to their lifestyles. Step in Netflix and Amazon Prime Instant Video.
Traditional broadcasters and cable/satellite TV providers are increasingly been threatened by streaming services being offered by companies such as Amazon and Netflix. Consumer behaviour is unwaveringly veering towards the binge variety of TV viewing, sans commercials. Hence the streaming company’s mad scrambling to secure the best content from traditional broadcasters, and their confident stride into producing their own content. All this comes at the expense of the more traditional media companies, cutting out broadcasters, cable TV companies and advertising agencies in one fell swoop.
Despite this adversity, the media industry has proven itself resilient if anything. Globally, it grew with a compound annual growth rate (CAGR) of 3% for the 2009-2013 period, with the broadcasting and cable TV sector dominating proceedings, hoarding almost 48% of revenues in 2013.
This came despite an ailing Europe’s paltry return of a 0.5% CAGR for the same period. Forecasts suggest a gradual return to health for the region. The Asia-Pacific is typically responsible for most growth, regaling the not so ailing region with a CAGR of 5.2% for the 2009-2013 period, fueled by trusty stalwarts China and India.
The data suggests South America and Asia-Pacific are where the media industry can expect the most promising growth markets as companies such as Netflix and Amazon expand their services into Western nations, filling a rare market gap in already developed markets.
For more information on the media industry, our Industry Profiles (covering the advertising, broadcasting and cable TV, publishing, and movie and entertainment sectors) are available by clicking here.