My job: When entertainment is also big business

Background: The Irish Entertainment and Media industry is set for continued growth to 2026, underpinned by increasing internet access, growth in cinema attendance and music festivals.

The Irish Entertainment and Media (E&M) industry is set to grow 4.53% annually over the coming years, primarily fuelled by increasing internet access and significant growth in internet advertising. 

According to the PwC Entertainment & Media Outlook 2022-2026, the sector will grow to €6.14bn, up from €4.92bn in 2021. 

With Covid-19 having boosted consumers’ interest in digital content and services ranging from exercise to streaming to shopping, the pandemic pulled digital disruption and industry tipping points forward by several years. 

Against a backdrop of uncertainty and change, the global entertainment and media industry is still continuing to grow, with the Irish market is in line with the global forecast despite less protracted growth in internet advertising. 

“It is the choices that billions of consumers make about where they will invest their time, attention and money that are fuelling the industry’s transformation and driving the trends,” Amy Ball explains.

 “We are seeing the emergence of a global and Irish E&M consumer base for the coming years that is younger, more digital and more into streaming and gaming than the current consumer population. This is shaping the future of the industry.” 

Growth in internet access

Internet access in Ireland will grow 6.12% over the period compared with 4.02% globally, driven by factors such as population demographics, the number of network providers, and the growing number of connected devices per household demanding service. 

Ireland is set to grow at the third fastest rate in Western Europe, indicative that the accelerated growth experienced by our European neighbours in prior years is now slowing. 

Total mobile Internet advertising revenue in Ireland will show annual growth of 7.85% to 2026, compared to 9.09% globally. 

“The main reason for the divergence on internet advertising between Ireland and global countries is a surge towards mobile as the medium for connecting to the internet and the profile of those users. 

"Studying mobile advertising data through a regional lens, we can see there are clear differences in the rate of growth.”

Ireland is broadly in line with Western Europe at 9%, whereas Asia, the Middle East & Africa and Latin America range from 12.5% to almost 16%. 

An analysis of countries in Europe with similar demographics indicates that Ireland is broadly in line with growth trends. 

For example, mobile advertising for Denmark is set to grow at 8.0% and Portugal at 8.7% suggesting that Ireland’s growth rate is at a more advanced stage of the curve.

The fact that we see significant growth on mobile suggests that mobile is the de facto means of internet access for many new incumbents to the online world, and as a result brands are investing heavily for their attention.

Around the world and in Ireland, in the not-too-distant future the metaverse could become a stunningly realistic world where individuals access immersive virtual experiences, through a Virtual Reality (VR) headset or other connecting device.

“Because the metaverse is an evolution that may profoundly change how businesses and consumers interact with products, services and each other, its potential financial and economic value goes far beyond VR. 

"In time, much of the revenues associated with video games, music performances, advertising and even e-commerce could migrate into the metaverse.” 

Although VR is currently one of the smaller segments tracked, a 36.5% rise in global spending over the past year is a hint of its long-term potential.

Significantly, the number of standalone headsets sold worldwide is expected to surge from 16m in 2021 to over 57m in 2026. 

Ireland’s Over The Top video market will see an annual growth rate in excess of 9%, driven by the ubiquity of smart TVs, tablets, and mobiles, and in addition to the reliability and strength of the networks transmitting data to these devices.

“Our survey identifies variability across every country and region, however looking more closely at countries with high growth rates, we see that these growth rates are from very low baselines."

"Ireland is expected to grow faster than some like-for-like European counterparts, such as Norway whose pace of growth is now slowing. By 2026, it is expected that Ireland will have played catch-up.”

 It is expected that the decline in cinema-going during the pandemic will be reversed by 2023. Box office revenue in Ireland is forecast to grow at over 22% in the forecast period to €150m by 2026. 

Also, with the easing of restrictions and return of music festivals and events, it is expected that Ireland’s live music industry will grow to in excess of €192m over the next four years. 

Overall, Ireland’s music, radio and podcast market is forecast to increase at over 8% to reach €426.44 million over the same period. 

Despite current economic challenges and fears of a global downturn, the E&M industry is resilient with impressive growth expectations, Amy Ball concludes.

 “For businesses, intense competition and continual disruption will remain the order of the day. Our data shows the mix of revenues and spending is changing rapidly.”

Every business in E&M stands to be disrupted. The challenge and goal must be to understand your consumer and be on the right side of disruption. 

By 2026, the Irish E&M market is set to become a €6.14bn industry, more digital and more mobile with VR all around us,” she adds. 

“Business models will need to shift to meet the dynamic Irish consumer. Irish businesses must learn to adapt and compete in an ever changing landscape as they continue to adapt their offerings. 

"In this high growth sector, EU and Irish regulators are putting pressure on the big tech companies to introduce measures aimed at enhancing consumer protection and market fairness.”