The Entertainment & Media Outlook: 2009 - 2013

Dublin Launch – 7 July 2009

Marcel Fenez
Global Leader, Entertainment and Media Practice
PricewaterhouseCoopers


Outlook coverage

Internet Access Spending: Wired and Mobile

Internet Advertising: Wired and Mobile
TV Subscriptions and License Fees
Television Advertising
Recorded Music
Filmed Entertainment
Video Games
Consumer Magazine Publishing
Newspaper Publishing
Radio and Out-of-Home Advertising
Consumer and Educational Book Publishing
Business-to-Business Publishing

PricewaterhouseCoopers Slide 4
No place to hide from the digital transformation

PricewaterhouseCoopers Slide 5
Global E&M Outlook 2009-10: -1.8% CAGR, $1.4 trillion
North America Europe, Middle East,
Africa (EMEA)
-4.2%
-1.9%

2009-10 CAGR

Latin America Asia Pacific

0.4% 1.2%

PricewaterhouseCoopers Slide 6
Global E&M Outlook 2011-13: 5.9% CAGR, $1.6 trillion
North America Europe, Middle East,
Africa (EMEA)
-4.2%
-5.1% -1.9%
-5.8%

2011-13 CAGR

Latin America Asia Pacific

0.4% 1.5%
8.4% 1.7%

PricewaterhouseCoopers Slide 4
Global E&M Outlook 2009-2013: 2.7% CAGR, $1.6 trillion
North America Europe, Middle East,
Africa (EMEA)
-4.2%
-5.1% -1.9%
-1.3% -5.8%
-2.7%

2009-13 CAGR

Latin America Asia Pacific

0.4% 1.5%
8.4% 1.7%
5.1% 4.5%
PricewaterhouseCoopers Slide 4
 (% Growth)

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Asia Pacific E&M Outlook 2009-2013: $413 billion (4.5% CAGR)
A fragmented road to recovery
5.4
Internet Access 11.8
0.3
Internet Ad: Wired & Mobile 12.9
3.4
TV Sub. and Lic. Fees 8.3
-5.8
TV Advertising 4.0
-5.9
Recorded Music
-0.2
1.9
Filmed Entertainment 5.4
6.6
Video Games
8.0
-6.2
Consumer Mag. Pub. 2.8
-7.1
Newspaper Pub.
1.5
-1.6
Cons. & Edu. Book Pub.
2.0
2009-10 CAGR
-8.8
B2B Publishing 2.4 2011-13 CAGR
-4.4
Radio/Out-of-Home 3.1
-10.0 % -5.0 % 0.0 5.0 % 10.0 % 15.0 %

Slide 5
Slow economy increases the speed of digital migration

PricewaterhouseCoopers Slide
Slide11
8
Digital grabs revenue share

Global digital vs non-digital spend 2008

Global digital vs non-digital spend 2013

Digital
Digital
21%
31%

Non-digital

Slide 12
How GDP plays its part – Global

10

5
(% Growth)

0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

-5

-10

Global nominal GDP

-15
Global E&M spending
Global consumer/user-end spending
Global advertising

Slide 12
Consumer behaviour
Digital life

• Always connected
• Multi-tasking
• Our time vs. prime time
• Music crosses the
threshold
• Games & movies
• Interactive & social
• Informed

PricewaterhouseCoopers Slide 15
Digital/mobile to account for 78% of all E&M growth – Global

2013

2012

2011

2010

2009

2008p

2007
Other consumer/end-
2006 user/access spending
Total spending on
2005
digital/mobile platforms
2004

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

(US$ Millions)

Slide 19
Advertising
 2013 global ad spend still trails 2007 levels

Global advertising market

500,000
4.7%
-1.1%

475,000 6.6% 6.1%

450,000
(US$ Millions)

5.9%
5.5%

-12.1%
425,000 1.4%
8.1% -2.7%

400,000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Slide 23
Global advertising by segment

0.3
Internet: Wired and Mobile
12.9
-5.8
Television
4.0

16.8
Video Games
11.8
-9.7
Consumer Magazines
5.1
-11.6
Newspapers
1.9
-8.9
Radio
1.3

-4.1
Out-of-Home
4.8
-12.5 2009-10 CAGR
Directories
2.5 2011-13 CAGR
-11.6
Trade Magazines
4.3

-20% -10 % 0 10 % 20%

Slide 26
Changing face of advertising

• Connected
• Mobile
• Targeted
• Interactive
• Branded content
• Fragmentation
• Cross-platform

PricewaterhouseCoopers Slide 20