ONLINE AND mobile will be the drivers of the entertainment and media industry, a new report from PricewaterhouseCoopers (PwC) has revealed, with changes in devices, markets and consumer behaviour just some of the challenges facing the industry.
The Entertainment and Media Report found that the rising value of online and mobile opportunities would dominate growth in almost every sector.
The so-called net generation, defined as those born between 1977 and 1997, is seen as an "influencer", setting the pace and direction of change in the entertainment and media industry.
Emerging sectors are also expected to play a key role in developing the industry. According to the report, Europe, the Middle East and Africa (Emea) are set to overtake the US as the biggest online advertising market by 2012.
"The Emea region has some of the strongest individual markets," said Marcel Fenez, managing partner in PwC's global entertainment and media practice, adding that the UK had been among the strongest markets for a number of years.
"There will be winners and losers, however," he added. "The printed newspapers are losing share in some markets; TV, particularly terrestrial in a number of markets, is beginning to suffer."
Mobile, meanwhile, is becoming an increasingly popular medium.
Bartley O'Connor, from PwC's Irish entertainment and media practice, said the mobile medium had been adopted in different ways in different cultures. In Europe, for example, the channel was adopted more quickly than in the US.
"There is a phenomenal opportunity for a lot of large and small companies looking at how best to come up with a model to best capture that potential," he said. "It's not easy. The mobile is a personal device. Companies need to be careful how they approach it."
While online media may be gaining in popularity, this does not mean that traditional media formats are giving up quietly.
Despite predictions that the digital age would sound the death knell for traditional media, the over-50s age group is providing balance in the sector, the report found.
Companies are also facing difficulties due to the global financial crisis, but it is not yet clear how this will affect entertainment and media.
"The first half of the year was relatively strong globally. There was a lot going on in terms of things like the Olympics, and many markets benefited from political advertising," said Mr Fenez.
Next year, he added, "was always going to see growth rates moderate. But it is still early days as to what is likely to be the impact. In the first half of 2009, advertisers will take a 'wait and see' approach."
Speaking at the report's publication, Minister for Communications Eamon Ryan said the communications sector was developing at an exponential pace, with Ireland set to make the changeover from analogue to digital terrestrial television, the increasing number of mobile phones, and the availability of next-generation broadband services.
