Thai entertainment and media revenues to reach $14bn in 2022: PwC

Stocks and Financial Services Press Releases Friday June 15, 2018 12:10
Bangkok--15 Jun--PwC Thailand

Thai entertainment and media (E&M) spending is forecast to reach US$14 billion (THB 478 billion), growing at a compound annual growth rate (CAGR) of 6.5% through 2022, according to PwC's Global entertainment and media outlook 2018-2022.

Total global spending on entertainment and media will rise at a CAGR of 4.4% over the next five years, from US$1.9 trillion in 2017 to US$2.4 trillion in 2022. Fast-growing segments include Virtual reality (40.4%) and Over-the-top (OTT) video (10.1%).

Segments growing fastest in Thailand include Internet advertising (18.6%), Video games and e-sports (16.9%) and OTT video (13.9%). However, newspapers (-1.9%) and magazines (-0.7%) will see revenue decline to 2022.

Internet advertising revenue in Thailand is driven by rising mobile consumption and the popularity of social media such as Facebook. Fuelled by mobile internet advertising, the market would be worth US$932 million (THB 31.8 billion), increasing by an 18.6% CAGR by the end of the forecast period in 2022.

"With more advertisers embracing digital platforms, we expect the outlook for the Internet advertising market in Thailand to remain upbeat," said Nattaporn Phan-Udom, a partner and leader of PwC's Technology, InfoComm, and Entertainment & Media (TICE) practice in Thailand.

"Video-on-demand, live streaming and e-commerce will continue to support growth but the key challenges for many operators would be having the right strategies, the right technology and the right content to deliver to their consumers in a timely and cost effective manner."

In Southeast Asia, Indonesia is now the largest market for Internet advertising with revenues of US$1.48 billion. Next are Thailand at US$397 million, Malaysia at US$328 million and the Philippines at US$319 million.

Video games and e-sports boom
By 2022, Thailand's video-game and e-sports revenue will rise to US$2 billion.

Thailand's video game market is one of the Asia Pacific region's fastest-growing segments, with revenue increasing year-on-year by 20% in 2017 to US$910 million. This was propelled by rising ownership of smartphones and more affordable internet data prices and in-app purchases. Similarly, e-sports is taking off in Thailand although the market size remains relatively small.

"The popularity of video games in Thailand will continue to grow significantly whether it be PC games or mobile games. With an explosion of e-sports in Asia in recent years, we expect to see more game developers, advertisers and sponsors both locally and internationally tapping into this market," Nattaporn said.

OTT video revenue in Thailand is set to reach US$128 million in 2022, from US$67 million in 2017, the Outlook data showed.

Although piracy and broadband infrastructure remain major issues for Thailand, OTT providers and advertisers have increasingly entered the market to gain from younger demographics accessing content via internet-connected devices.

Drivers of the new ecosystem

The Outlook also discusses the concept of 'Convergence 3.0', which is changing the nature of competition with the emergence of supercompetitors and niche brands that are focussed more on connecting with consumers and building trust. The report identifies five key drivers behind the latest wave of convergence reshaping the industry.