Burgeoning entertainment and media industry segments, such as virtual reality (VR), e-sports and music streaming, highlight the vital role of ‘fans’ as a source of competitive advantage, claims PwC’s Global entertainment and media outlook 2017-2021.
It expects the consumer VR content market to grow at a compound annual growth rate (CAGR) of 77.0% over the next five years, reaching a value of US$15.1bn by 2021.
Over the same period, total global e-sports revenue is predicted to achieve a CAGR of 21.7% and annual revenues of $874 million in 2021, with music streaming experiencing a CAGR of 20.7% over the same five-year period.
Deborah Bothun, PwC Global Entertainment and Media Leader, said: “Accelerating change in technology, user behaviour and business models has opened up a gap between how consumers want to experience and pay for E&M offerings and how companies produce and distribute them.
“The right user experience bridges this gap. To deliver it, companies must pursue two related strategies. First, build businesses and brands anchored by active, high-value communities of fans, united by shared passions, values and interests. And second, capitalise on emerging technologies to delight users in new ways and provide superior user experiences.”