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Mobile internet top dog by 2017

News, 03 June 2015

LONDON: Mobile internet access is set to overtake fixed broadband within the next two years according to a new study of the UK entertainment and media market.

This is one of the forecasts made in consulting firm PwC's latest Global Entertainment & Media Outlook 2015-2019, which includes like-for-like, five year historical and forecast data for consumer and advertising spend across 13 media industry segments in 54 countries.

It predicts that mobile internet access in the UK will grow at 7.1% a year and will pass fixed broadband spending in 2017. By 2019 it is expected to be worth £7bn, the highest level in Western Europe.

It will take just over a 10% share of the entire UK Entertainment and Media (E&M) market which PwC says will be valued at £66.6bn in 2019, second only to Germany.

Other tipping points are also on the way: total digital music revenues will surpass radio advertising revenues this year; consumer e-books will overtake print/audio copies in 2018; digital out of home will pass the physical variety in 2019.

The biggest revenue generators in digital will be internet access and internet advertising, while the fastest growing digital sectors will be TV advertising, out-of-home advertising and book publishing.

Internet advertising, for example, will see a compound annual growth rate of 10.6% over the next five years, rising from £7bn in 2014 to £11.7bn in 2019; within that mobile will grow at a CAGR of 25.4% to hit £5bn in 2019.

By 2020, according to Phil Stokes, UK entertainment and media leader at PwC, "revenues from digital look set to reach a 50/50 share with non-digital".

"Increasingly, though, it's clear that consumers see no significant divide between digital and traditional media," he said. "What they want is more flexibility, freedom and convenience in when, where and how they interact with their preferred content."

That meant, Stokes suggested, that marketers need to think less about developing a digital strategy and more about having "an overall strategy that's fit for a digital age – one that marries together online and offline experiences for consumers".

Data sourced from PwC; additional content by Warc staff