July 22 (SeeNews) - The media and entertainment industry in Romania will reach the $3 billion (2.67 billion) threshold in 2019, up by 7.1% compared with 2018, PwC consultancy said on Monday.
However, the Romanian media and entertainment remains the smallest market in Central and Eastern Europe (CEE), according to the 20th annual edition of PwC Global Entertainment & Media Outlook (GEMO) covering the period 2019-2023.
The study forecasts an estimated annual growth rate of over 6% by 2023, with the market value rising to $3.8 billion.
"Following the global trend, personalisation and digitization are increasingly adopted on the Romanian media and entertainment market, with estimates indicating that the highest growth rates will be on this segment by 2023. This will lead to a more aggressive competition and a wave of investment in innovation. The result will be a media world more personal than ever, in which consumers will select and control their media consumption by diverse means, whether we are talking about smart devices, Over-The- Top (OTT), smart home or connected car," PwC Romania partner and leader of the technology, media and telecom department, Florin Deaconescu, said in the report.
The value of Romanian OTT market (Netflix, HBO Go) had the biggest growth on the overall media and entertainment market, of over five times from 2014 until now, being estimated at $24 million this year. By 2023, this segment will continue to be the most dynamic of the media and entertainment market, with an average annual rate of 18.7%, reaching $44 million, according to the report.
The second largest growth rate in the market is expected in the video games and e-sports segment, of 10.79%, to $136 million this year and $187 million in 2023. In third place is the online advertising, with an average annual growth rate of 9.5%, from $112 million this year to $157 million after four years.
Spending for internet access continues to hold the first position on the market, with 43.5%, amounting $1.31 billion. By 2023, spending will total $1.77 billion, accounting for 46% of the market. A slight increase, of 1.56%, is expected for the TV and home video segment that will generate, in Romania, revenues of $ 537 million in 2023, compared with $506 million in 2019. This is the second largest segment in Romania in terms of revenue generated after Internet access, PwC Romania noted.
By contrast, newspapers and consumer magazines in Romania will continue their decline from the recent years, in line with the global trend, from $89 million in 2019 to $77 million in 2023.
The books market in Romania will grow from $109 million in 2019 to $119 million in 2023. The main source of revenues in the cinema industry has been and will be the box office. The industry will generate revenues of approximately $97 million by 2023 with a compound annual growth rate (CAGR) of 4.67%.
The outdoor advertising market will grow by an average of 5.7% per year, from $41 million in 2019 to $51 million in 2023.
($=0.8898 euro)