Zhang Yu

JeniZhang13@163.com

TOTAL entertainment and media revenue in China is expected to increase at a compound annual growth rate (CAGR) of 5.6 percent over the next five years and reach US$434.7 billion by 2023, only trailing India and Indonesia, PwC said in its latest report titled “Global Entertainment & Media Outlook 2019-2023.”

According to the report, digitalization has continued its growth momentum. Digital revenues accounted for more than 70 percent of all China’s entertainment and media revenue in 2018. And by 2023, the percentage is expected to reach 75.4 percent, above the global average of 61.6 percent.

By industry segment, digitally-driven segments will see the most vigorous growth. Despite narrowing gaps, virtual reality (VR) and over-the-top (OTT) video will continue to lead the way with CAGRs of 35.9 percent and 20.5 percent, respectively, over the next five years.

In addition, podcasts and e-sports will show strong growth momentum, with respective CAGRs of 34.6 percent and 21 percent. Data consumption is on the rise and will grow rapidly at a rate of 33 percent.

“The arrival of 5G will optimize video experiences, allowing consumers to start seeing mobile Internet with comparable speed to the fastest fixed broadband,” said Wilson Chow, PwC’s global, mainland and Hong Kong leader of technology, media and telecom.

Chow predicted that heavy investment in 5G will change Internet consumption patterns, increase the market share of videos in the industry, and stimulate continued rapid development of China’s entertainment and media industry.

The report also pointed out that VR is the fastest-growing segment in China’s entertainment and media industry.

It is showed that China was the world’s second-largest VR market with revenues of US$364 million in 2018.