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GEMO report 2019-2023 : Media and entertainment industry in Romania, to reach 3bln US dollar threshold in 2019
The media and entertainment industry in Romania will reach in 2019 the 3 billion US dollar threshold, up 7.1pct compared to 2018, but remains the smallest market in Central and Eastern Europe (ECE), according to the PwC Global Entertainment & Media Outlook report 2019-2023 (GEMO).
By 2023, the average annual growth rate will be over 6pct, with the market value rising to 3.8 billion US dollars.
"Following the global trend, personalization and digitization are increasingly taking place in the media and entertainment market in Romania, with the report's estimates indicating that this segment will have the highest growth rates by 2023. This evolution will lead to more and more cut-throat competition but also a wave of investment in innovation.The result will be a media world in which consumers, including from Romania, will be able to control and select on a large scale the type of content they want to access with more and more diverse means, whether we're talking about smart devices, Over-The-Top (OTT) solutions, smart home or internet-enabled machine," says Florin Deaconescu, Partner and Technology Services Leader of PwC Romania.
The value of OTT services market (eg Netflix and HBO Go) in Romania has grown the most in the media and entertainment market, about five times since 2014, being estimated at 24 million US dollars this year. Until 2023, it will continue to be the most dynamic segment in the media market, with an average annual rate of 18.7pct, reaching 44 million US dollars.
According to the report, the second largest increase in the market is estimated for the video and e-sports segment (10.79pct), reaching 136 million US dollars this year and 187 million in 2023. Ranking third is the Internet advertising, with an average annual advance of 9.5pct, from 112 million US dollars this year to 157 million in four years.
"Expenditures for Internet access continue to hold the first place at market level, of 43.5pct, totaling 1.31 billion US dollars. Bt 2023, they will reach 1.77 billion US dollars, accounting for 46pct of the market. Television and content video at home will have a slight increase, forecast at 1.56pct, which will generate revenue of USD 537 million in 2023 compared to USD 506 million in 2019. This is the second largest segment in Romania in terms of revenues generated, after Internet access. In this context, TV advertising revenues will increase from an estimated USD 384 million this year to USD 529 million in 2023, with an average growth rate of 8.5pct per year," show the main conclusions of the report for Romania.
PwC analysts estimate that after two years of decline, the radio, music and podcasts could grow from USD 35 million this year to 41 million in four years.
On the other hand, the segment of newspapers and magazines printed in Romania will continue its decline of the recent years, in line with global developments, from USD 89 million in 2019 to USD 77 million in 2023.
According to the Reuters Institute Digital News Report, only 18pct of Romanians read news on print, online sources and social media dominating consumption. While reading news mainly on digital devices, only 11pct of readers pay for online news.
The Romanian book market will rise from USD 109 million in 2019 to USD 119 million in 2023.
Ticket sales will remain the main source of revenue for the cinema industry, which will reach approximately USD 97 million by 2023, with an average annual growth of 4.67pct.
The Business to Business (B2B) segment in Romania, including business directories and catalogs of business information, advertisements, business magazines, fairs and exhibitions, has been estimated at USD 265 million this year, due to rise to USD 304 million in 2023.
The outdoor advertising market is also due to grow in the next four years with an average annual growth of 5.7pct, from USD 41 million in 2019 to USD 51 million in 2023.
"Compared to Central and Eastern Europe (CEE), the media and entertainment market will have an average growth rate of about 5.7pct and will reach total revenues of about USD 77 billion in 2023. The largest market is Russia, followed by Poland and Turkey," the report shows.
The Global Entertainment & Media Outlook report analyzes 14 segments of the media and entertainment industry in 53 territories and facilitates comparison of consumer and advertising data. The segments covered by this report are: books, B2B media, cinema, internet access, internet advertising, newspapers and magazines, music, radio and podcasts, outdoor advertising, OTT video, traditional TV and home video consumption, TV advertising, video games and electronic sports, virtual reality .