The gaming industry is taking off. In 2016, consumer spend on video games overtook consumer spend on TV in Singapore, which combines TV subscriptions, over-the-top and video on demand. This saw consumer spend on video games in Singapore reach US$368million, with a forecast to rise to US$489million in 2021, said a recent study by PwC.
According to PwC’s Global entertainment and media outlook 2017-2021, factors which contributed to this rise include a drop in spending on TV, as consumers reject traditional large-bundle subscriptions. This was in favour of viewing content online, which includes both paid and pirated, as well as content found on social media.
Another factor is the changing profile of video gamers, which saw the biggest change. From being a young male playing to beat the computer, the video gamer demographic has evolved to encapsulate the casual gamer from all demographic segments. Although spend per video game transaction is low, in-app purchases add up to form a considerable market. In fact, 60% of Singapore video game spend comes from casual or social games.
Print still rules
Despite several print publications shuttering and others such as JUICE magazine decreasing its print frequency and put its focus on digital, it seems like print advertising spend in Singapore is still strong. In fact, it overtakes internet ad spend.
According to PwC’s Global entertainment and media outlook 2017-2021, currently, internet advertising only represents 14.7% of total advertising spend, which is lower compared to markets such as Japan and China. Instead, print advertising spend is the medium which remains high in the advertising segment for Singapore.
Print currently represents 44.5% of total advertising spend. But decline is imminent as print advertising is expected to drop by 2.1% per annum over the next five years.
Internet advertising in Singapore is forecasted to grow 11.3% per annum leading up to 2021. Currently, when it comes to internet advertising, Singapore is still behind global benchmarks despite seeing fast growth. That being said, the direction is seen to be moving towards internet advertising coupled with recent accelerations in the speed of growth, according to PwC.
According to PwC, entertainment and media revenues will also rise in Singapore at an overall compound annual growth rate (CAGR) of 4.7% over the next five years. This will be from US$5.6 billion in 2016 to US$7.1 billion in 2021. Meanwhile, on a worldwide level, entertainment and media revenues will rise at a CAGR of 4.2% nominally over the next five years. This is from US$1.8 trillion to US$2.2 trillion in 2021.
Consumer spend on live events slated to grow
When it comes to live events in Singapore which include box office and live music events, consumer spend is projected to grow over 4% per annum over the next five years. According to PwC, this is almost double the rate of total entertainment and media consumer spend.
“At a time when entertainment and media is becoming more virtual, consumers in Singapore continue to value live experiences. Singapore now has venues, such as the National Stadium, which play host to the global stars, and consumers are snapping up these high-priced tickets more than ever before,” Oliver Wilkinson, entertainment and media leader, PwC Singapore, said.
Technologies which deliver an enhanced consumer experience and also harness data insights will transform the entertainment and media industry.
This will be driven by platforms where consumers have the freedom of choice.
“It is a focus on user experience above all that will determine the winners and the losers. Embracing technology and data is not new – what is new is the focus on using both to enhance user experiences and interfaces. In particular, data analysis used right can enable the industry to shift from describing outcomes to predicting consumer trends and prescribing courses of action,” Mark Jansen, technology, media and telecommunications leader, PwC Singapore, added.