MEDIA & MARKETING | Staff Reporter, Singapore

Entertainment spending to grow 3.5% to US$6.7b in 2022

But growth is still below the GDP’s pace and competition keeps getting tougher.

Singapore’s expenses on entertainment and media (E&M) are expected to grow by 3.5% over the next five years from US$5.6b in 2017 to US$6.7b in 2022, PwC Singapore said.

PwC Singapore entertainment & media leader Oliver Wilkinson commented, “In Singapore, we are seeing a greater sense of urgency now as the status quo is being disrupted. Overall media industry growth is a little below the pace of GDP, and the pie is being divided by a greater number of players as consumer choice proliferates. So to succeed in that tough environment, incumbents need to nurture new revenue models, apply data analytics and continually refine the user experience to engage fans.”

According to a report, Singapore’s Internet advertising market is expected to grow at 8.4% to reach US$453m in 2022 and will continue to be dominated by mobile internet advertising, accounting for 58% of revenue.

In 2017, advertisers spent US$302m on Internet advertising in Singapore, an increase of 13.7% on 2016. Singapore benefits from the country’s robust digital infrastructure; in 2017 there were 1.3 million households connected to high-speed broadband and 5.5 million high-speed mobile connections.

“The market for magazines and newspapers is increasingly following this trend to move from print to digital formats, with consumer magazine digital revenue growth finally offsetting the traditional revenue decline in 2018,” PwC Singapore added.

Paid subscription models have been picking up rapidly, with music streaming revenue expected to account for around 90% of the total recorded music revenue by 2022.

“Yet, whilst encouraging a membership mindset has its benefits to allow a company to sell premium experiences, products and benefits, it also presents another challenge when brands are unable to reach their audience through ads,” it said.

Streaming is the engine for growth, PwC Singapore said. Digital music streaming revenue grew from just US$2.9m in 2013 to US$20m in 2017 and should climb to US$62m by 2022, increasing at a 25.2% CAGR.

“It’s impossible to overestimate the importance of streaming. In five years from now, on-demand platforms will generate over 98% of the value for Singapore’s entire digital recorded music market, according to forecasts,” it added.

The boom of e-sports in Singapore’s video game market has bolstered social/ casual gaming revenue and made it grow 10% annually in recent years. “Whilst still a niche market today, the launch of previous games such as Pokémon Go and Clash Royale has proved hugely profitable and present a fresh platform for media and advertising,” the firm added.

Meanwhile, the traditional gaming market is still performing well in Singapore as the release of new devices like Nintendo Switch and upgraded versions of the PlayStation 4 and Xbox One has refreshed the console market. However, the PC gaming market suffers from “high rates of piracy,” which is being offset by online transactions revenue from games like League of Legends and Overwatch. 

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.