In a new report, accounting firm PwC diagnoses plateauing streaming revenue per user, forecasts ad revenue to hit $1 trillion, and calls business model reinvention "an existential imperative."
“This is primarily driven by a larger budget slate expected to drive more box office sales and more ad spend,” explains Bart Spiegel, global entertainment and media deals leader at PwC, to The Hollywood Reporter.
“While some major legacy media companies now offer digital options, they all still face challenges in reducing churn, managing the rising costs of content (especially sports rights), and delivering a compelling value proposition to their subscribers.”
“The growing significance of advertising in the entertainment and media industry can be attributed to factors such as the ability to monetize data, the closer relationship between product discovery and purchase, and the influence of global privacy regulations.”
If market players are to gain their share of the growing revenue pools we identify, they will have to reimagine how their company creates, delivers, and captures value, leveraging the growth of advertising while also harnessing the powerful opportunity presented by AI.”
“Having exploded onto the scene in the past couple of years, generative AI brings major implications — including both opportunities and challenges,” PwC notes in its Global Outlook report.
“Here its application has tended to focus initially on extracting small pieces of information and generating summaries in subsectors, such as sports media,” it highlights before outlining more opportunity ahead: “If GenAI can be harnessed to offer new experiences and create new revenue streams, the growth potential is even greater.”
The original article contains 1,598 words, the summary contains 230 words. Saved 86%. I’m a bot and I’m open source!
This is the best summary I could come up with:
“This is primarily driven by a larger budget slate expected to drive more box office sales and more ad spend,” explains Bart Spiegel, global entertainment and media deals leader at PwC, to The Hollywood Reporter.
“While some major legacy media companies now offer digital options, they all still face challenges in reducing churn, managing the rising costs of content (especially sports rights), and delivering a compelling value proposition to their subscribers.”
“The growing significance of advertising in the entertainment and media industry can be attributed to factors such as the ability to monetize data, the closer relationship between product discovery and purchase, and the influence of global privacy regulations.”
If market players are to gain their share of the growing revenue pools we identify, they will have to reimagine how their company creates, delivers, and captures value, leveraging the growth of advertising while also harnessing the powerful opportunity presented by AI.”
“Having exploded onto the scene in the past couple of years, generative AI brings major implications — including both opportunities and challenges,” PwC notes in its Global Outlook report.
“Here its application has tended to focus initially on extracting small pieces of information and generating summaries in subsectors, such as sports media,” it highlights before outlining more opportunity ahead: “If GenAI can be harnessed to offer new experiences and create new revenue streams, the growth potential is even greater.”
The original article contains 1,598 words, the summary contains 230 words. Saved 86%. I’m a bot and I’m open source!