According to 22nd Global Media and Entertainment Survey 2021-2025 From the consulting firm PwC, the Entertainment and Media market in Brazil is expected to grow 4.7% until 2025 and 5% annually. In values, the sector will manage to move USD 38 billion.
The global survey analyzed 14 industry segments in 53 countries, including data consumption, digital and television advertising, OTT video, cinema, Internet access, and games. In 2020, Brazil grew less than the global market for the first time, and the forecast is that it will only exceed the world average again in 2023.
The pandemic boosted Brazilian consumer spending towards home entertainment: OTT videos and games benefited the most and will continue to grow. Internet spending should grow by 4.4%, consumption by 4.3% and advertising by 6%, resuming the pre-pandemic rhythm.
The sectors most affected by the pandemic, such as concerts and fairs, will have a rapid recovery of 20% per year, driven by the willingness of consumers to engage in outdoor activities, after more than a year at home, and should reach the same level as in 2019. Cinema, on the other hand, suffered an 86% drop in revenues, returning to the levels of 2016, and should only reach the same levels of 2019 in 2024.
“The media and entertainment sector has experienced challenges and uncertainties around the world since the beginning of the pandemic. On the other hand, it has also accelerated processes that were already underway, such as digitization and the consumption of online content, which will contribute to a faster recovery in the coming years “, assured Ricardo Queiroz, Partner of PwC Brasil.
Greater internet access and more digital consumption
Among the trends observed in the buying behavior of Brazilians is the increase in the acquisition of reading content on digital platforms. Magazines are expected to grow from 8% to 13%; books from 10% to 11%; and newspapers from 7% to 11%.
Advertising spending is expected to grow 6% per year by 2025, returning to pre-pandemic levels, which negatively affected the market by USD 1 billion in 2020. A return to previous volume should only occur in 2022. Advertising in online TV will develop rapidly over the period, with the growing impact of streaming services on broadcasters, but will still account for only 5% of total market revenue in 2025.
The consumption of digital music has also grown a lot with the pandemic and the absence of live shows. In 2025, streaming will represent 72% of expenses, while the box office will be 17%, which shows signs of recovery, with the public returning to concerts over the years. The consumption of content to watch will continue with the strength of OTT videos (13%) and cinema (40%). Pay TV and pay TV videos will fall between 1% and 3% respectively, as well as home videos (-11%).
Another important fact is the growth of Internet access by Brazilians. By 2025, 41 million households are expected to have fixed internet and 163 million people to be mobile internet subscribers. But a lot of investment in network infrastructure is still needed to ensure more access, with more speed, such as support for 5G.
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