We all like to be entertained.
We all like to consume media.
But the types of entertainment available to us, as well as the way we access it, has changed dramatically over the past two decades. From the internet, to smartphones and tablets, to streaming video services, to the growing popularity of gaming, this space has never offered more choice. Thank you, technology!
In an upcoming post we’ll take a deeper look at the impact that these trends are having on jobs in the sector. Today we start with the big picture view.
One of the first issues faced when talking about ‘Entertainment + Media’ is how to define it. Government statistics are based on industry groupings and definitions that don’t always line up neatly with a modern, digital world. So, we’ve had to snoop a bit deeper for some numbers. Here’s what we found:
- Combining advertising, media, arts and entertainment sectors, industry employment in Australia is around 450,000, or 3.5% of the nation’s workforce.
- By 2017, the value of the entertainment and media market is projected to reach $35.74 billion. This is up from $28.44 billion in 2008. (See chart below)
- Consumer spending on entertainment and media products is growing at an annual rate of 3.8%, heading towards an estimated total of $27.1 billion by 2019.
So what are the developing trends in Entertainment and Media? We’ve had a look around to learn about the biggest changes.
Devices + ‘On-Demand’ = How we watch
The first trend to note is the continued change in method of consumption.
We want what we want, when we want it…and it’s never been easier to get it. Using streaming services on our portable devices means that we can watch, listen or play what our heart desires, no matter where we are.
A recent media consumer survey conducted by Deloitte reveals some interesting things about how we like to be entertained, the devices we like to use and how social media networks allow us to access news and share with friends.
In Australia, watching TV still counts as our most popular form of entertainment…but use of the internet has drawn level, to be equal first. In fact, old school linear TV programming (i.e. watching what ‘they’ want to show you and when) now only accounts for 44% of viewing. The rest? Well, that’s made up of a combination of streaming, downloads, on-demand and recorded content.
As you might expect, usage is split by age demographic, with older viewers more likely to get their programming via a TV set and younger generations (especially Millenials) accessing what they want on the internet, via desktop computers or portable devices.
Social media continues to grab a firmer hold on our time, as these numbers show:
- 80% of us have at least 1 social media account
- 59% use social media daily
- 48% of people think that businesses use of social media has improved their perception of the brand.
Whilst everything digital is on the rise, newspaper and magazine subscriptions are on the decline. Between 2013 and 2015, news subscriptions dropped 3% per year. That’s a great result compared to magazine subscriptions. They were down 20% per year!
You can watch a 3 minute summary video of the Deloitte findings, or choose to download the full report, here - http://bcove.me/q9yaoz9v.
As our methods of consuming information have changed, advertisers have had to adapt and develop new marketing approaches to reach their target audience. Whilst two-thirds of us still rely on TV commercials to learn about new entertainment content, smartphones are the preferred method of most people.
Here’s where it gets interesting. Whilst many of us would prefer to use our smartphones to learn about new shows and movies, we don’t want to see ads on our phones. A whopping 77% of us find ads on our smartphones more intrusive than TV advertising…and 62% of us don’t want to receive ads based on our location.
Jeeeez; we’re really hard to please sometimes.
Overall though, internet advertising is growing strongly. It’s on track to top 50% of total advertising spending by the year 2018 - by 2020 it will reach $10 billion.
The final trend that we're going to touch on is the continued growth in gaming. The Australian video game industry recently announced a 20% increase in sales of interactive entertainment, reaching $2.83 billion in 2015. The average Australian now spends 88 minutes each day on game play. (OK, which one of you is playing my 88 minutes?) The average age of video game players? 33 years old.
Incredibly - at least to me anyway - just under two thrids of Australian households have 3+ game devices!
So, what’s the skinny?
We like to watch the content we choose, when we choose it. And...we play A LOT of games.
The good news for businesses that give consumers what they want is that people are happy to pay. Print media continues to decline; no surprises there.
What does this all mean for people working (or wanting to work) in Entertainment and Media? We’ll take a closer look at some specific jobs in the sector in our next industry piece.