Spain’s media sector to grow 2.5% by 2016

Iñaki Ferreras | 07-11-2012

The media and entertainment sector in Spain will grow 2.5% by 2016, driven primarily by tablets and mobile phones, according to PwC estimates.

In Global Entertainment and Media Outlook 2012-2016, PwC says that in 2016 digital will represent nearly 40% of total industry revenue. In this transformation, new devices like tablets or smartphones, will play a "significant role and will be the engines of growth in most markets," the report says.

Online advertising and Internet access will have the highest growth in Spain to 2016, with revenue increases of 14.2% (up to US$2.431 million) and 6.8% ($10,242 million), respectively. Meanwhile, mobile advertising, with paid search advertising and online video, will be consolidated as a "major source of sales" in this segment.

As for the market for pay-TV (including subscriptions, video-on-demand, mobile TV and pay-per-view), the report believes the penetration of tablets will help increase service subscriptions. This market will grow 6.2% worldwide, while in Spain it will grow at a lower rate, by 0.5%to $2.336 million. Also, the film industry - which in Spain will see income grow by 2.1% in the next five years, one point less than the world average - shows that electronic platforms are growing thanks to tablets and connected TVs. The box office will also increase in coming years, thanks to the moderate increase in prices and the growth of 3D screens. Meanwhile, home video (DVD) will be affected by competition from electronic platforms and revenue will fall in the coming years.

The video game market is expected to grow over the next four years in Spain (4.6%) and the world (7.2%), after the online advertising and Internet access. The popularity of apps stores for tablets and smartphones will make buying games easier for users and this is expected to increase in the number of buyers.

Finally, online gaming and wireless will see revenue increases of 13% and 10% respectively, worldwide. The report also highlights the explosion of games with micro-transactions, the influence of which within the industry will grow in the coming years.

Manuel Martín Espada, PWC partner responsible for entertainment, media and entertainment, believes that "the industry is immersed in the digital world." He continued: "It has become the heart of many companies in the sector and represents the best option for sustained growth."