Transmedia Market Projections 7/2014
Transmedia Market Projections
Movies, Home Video, OTT [Over-the-Top] Streaming, Video Games, Mobile Apps, Music, Television/Internet Advertising
Transmedia is the Future of Media
Transmedia, sometimes referred to as the Second Screen, encompasses all aspects of the Entertainment Media universe, including movies, television, the web, mobile, and most importantly, cross-platform advertising. As the data below will indicate, media content and advertising revenues on all screens are on the upswing. It should be noted that in the US, 80% of all people who watch television are also on another screen.
All entertainment and media projects must be evaluated for their transmedia potentials from the beginning of development. For distributors, producers, and investors, taking into account all potential revenues sources from all media platforms is absolutely essential. Cross-platform advertising for transmedia projects, i.e. movies, video games, television, web and mobile entertainment properties, is here now and, as the numbers below indicate, is the wave of the future. And social media is a key element of this evaluation.
All media will be Transmedia, all media will be available on all screens 24/7, globally.
Just as all stories can and will be told on all media, cross collateralization of media investments will recoup from all screens. This is the bright future of media content in the emerging global market place.
All aspects of the entertainment industry, are rapidly gearing up to take advantage of the exploding opportunities provided by the convergence of all media platforms and the opportunities for discovery, matching, and sharing that the new social media provide.
We are just at the beginning of the new generation of media and storytelling.
- See the chart below for the latest aggregate numbers representing the Transmedia revenue stream projections through 2018. Source: SMPTE conference, Cisco BDG, Stanford University, June 2014.
FILMED ENTERTAINMENT
- Globally, filmed entertainment revenue will rise at a CAGR of 4.5% from US$88.3 Billion in 2013 to US$110.1 Billion in 2018, passing US$100 Billion in 2017
- Globally, the total combined revenue from over-the-top (OTT)/streaming services and broadcasters’ video on demand (VOD) services will grow at a CAGR of 19.9% to overtake physical home video revenue (the sale and rental of DVDs and Blu-ray discs) in 2018
- OTT/streaming services will deliver the fastest rates of growth. OTT/streaming will see the fastest rates of growth (28.1% CAGR), rising from US$6.6 Billion globally in 2013 to US$22.7 Billion by 2018
- Global subscription TV revenues will grow at a CAGR of 3.5% over the next five years to US$236 Billion in 2018. *Note: China approaching US$20 Billion subscription revenues by 2018.
VIDEO GAMES AND MOBILE
- Total video game market, including Video game console hardware and software, online, mobile and PC games, totals $101 Billion in 2014 and projected for $111 Billion in 2015
- Over the next five years, the Mobile Video Games industry is projected to grow at an average annual rate of 3.0% to $47.4 Billion
- Total Mobile App Store Downloads: 91% are Free downloads, however in-app purchases projected to deliver up to 48% revenue by 2017
- Global smartphone connections approach 3.5 Billion in 2018
MUSIC AND RADIO
- Total consumer spending on music in 2012 was $49.9 Billion, a slight fall from 2011
- Annual Global Music revenue will start to grow again in 2013, reaching $53.8 Billion in 2017
- U.S. music market rise to $19.8 Billion by 2016
- Global total digital recorded music revenue US$10.18 Billion in 2014
- Global total physical recorded music revenue US$10.17 Billion in 2014
- Global digital music downloading revenue reaching US$7.1 Billion in 2018
- Live Music is project to reach $30.9 Billion in revenues by 2017
- Total radio revenue reported as US$44.5 Billion in 2013, projected to reach US$50.7 Billion by 2018
- Broadcast advertising will increase to $802 Million in 2016
- Satellite radio advertising will also rise to $116 Million in 2016
- Satellite radio subscription spending will also rise to $4.1 Billion in 2016
INTERNET ADVERTISING
- Internet advertising will become the largest entertainment and media advertising segment. In 2013, total Internet advertising revenue was US$117.2 Billion. Estimate: US$194.5 Billion in 2018, up from total revenue share of US$58.7 Billion in 2009. Sources for the above data include Billboard, PwC, Gartner, Digital Music News
