Zhang Yu

JeniZhang13@163.com

CHINA’S entertainment and media industry will experience a V-shaped rebound after 2020, with a compound annual growth rate (CAGR) of 5.2 percent from 2020 to 2024, which is higher than the global rate of 5.1 percent, accounting firm PwC said in an outlook report Thursday.

Hit by the COVID-19 pandemic, the total industry revenue in 2020 is estimated to be approximately US$331 billion, down 2.8 percent year on year.

The pandemic is changing how consumers behave across every aspect of their lives, accelerating an on-going shift from traditional to digital channels, such as watching new movies through OTT video platforms, watching live concerts and virtual reality (VR) performances online and participating in online events, according to the report.

Meanwhile, entertainment and media companies are encouraged to embrace new business models to cater to changes in consumer behavior and increase revenue growth.

Looking at the sub-sectors, China’s OTT video market has grown significantly in recent years. It is estimated that from 2020 to 2024, China’s OTT video market will become increasingly mature, with 12.2 percent CAGR, and annual revenues expected to reach approximately US$16.1 billion by 2024.

It is estimated that in 2020, China’s movie revenue will plummet by 78.1 percent year on year to only about US$2.26 billion. During the forecast period of 2020 to 2024, the country’s movie revenue will rebound rapidly to reach 37.8 percent CAGR.

Video games in China continue to grow rapidly. It is estimated that in 2020, Chinese video games will generate US$31.2 billion in revenue. The CAGR from 2020 to 2024 will be 5.4 percent, and revenue will reach as high as US$38.5 billion by 2024.

China’s total e-sports revenue is expected to further rise to approximately US$410 million in 2020, and at 13.1 percent CAGR from 2020 to 2024.