Media and entertainment industry in RO to reach USD 3 bln this year

The media and entertainment industry in Romania will reach the USD 3 billion threshold in 2019, up 7.1% over 2018, but remains the smallest market in Central and Eastern European (CEE), according to the 20th edition of PwC Global Entertainment & Media Outlook 2019-2023 (GEMO).

By 2023, the study estimates an annual growth rate of over 6%, with the market value rising to USD 3.8 billion.

“Following the global trend, personalization and digitization are increasingly adopted in the Romanian media and entertainment market, with estimates indicating that the highest growth rates will be on this segment by 2023. This will lead to more aggressive competition and a wave of investment in innovation. The result will be a media world more personal than ever, in which consumers will select and control their media consumption by diverse means, whether we are talking about smart devices, Over-The-Top (OTT), smart home or connected car,” said Florin Deaconescu, partner and leader of the Technology, Media and Telecom department, PwC Romania.

The value of the Romanian OTT market (Netflix, HBO Go) had the biggest growth of the total media & entertainment market - over five times from 2014 until now, being estimated at USD 24 million this year. By 2023, this segment will continue to be the most dynamic, with an average annual rate of 18.7%, reaching USD 44 million.

The second-largest growth in the market is estimated for the video games and e-sports segment, of 10,8%, to USD 136 million this year, and USD 187 million in 2023. On the third place is online advertising, with an average annual advance of 9.5%, from USD 112 million this year to USD 157 million over four years.

Spending for internet access continues to hold the first position on the market, with 43,5%, amounting USD 1.31 billion. By 2023, they will total USD 1.77 billion, accounting for 46% of the market.

A slight increase, of 1,56%, is estimated for the TV and home video segment, that will generate, in Romania, revenues of USD 537 million in 2023, comparative with USD 506 million in 2019. This is the second largest segment in Romania in terms of revenue generated. Revenue from TV advertising will increase from an estimated USD 384 million this year to USD 529 million in 2023, with an average growth rate of 8.5% per year.

(Photo: Pexels.com)