According to PwC, first quarter (Q1) 2016 deal value, totaling $10.4 billion, declined to its lowest point since before 2014. However, deal volume (183) improved six percent over Q4 2015 (172). In Q1, film and content deals provided the lion’s share of merger and acquisition (M&A) value, whereas advertising and marketing sustained overall volume.
The lines between desktop, mobile, TV and film are beginning to blur as the various platforms are often more distinguished by differences in use case than by the underlying technology.
According to PwC’s U.S. Entertainment, Media & Communications (EMC) Year-End Deal Insights, 2015 deal value totaled $149 billion – that’s a 13 percent increase over 2014. However, deal volume declined seven percent from 886 announced deals in 2014 to 818 in 2015. Overall, cable deals provided the lion’s share of 2015 deal value, whereas advertising and marketing spurred deal volume.
As in the US, where live TV viewing sank 8% in the 25-34 year olds last year, younger people in the UK are also shifting their viewing online. The 25-34 year old UK viewers watched 7% less television last year. UK youth has also adopted the smartphone as their device choice.
Large publishers and broadcasters — many of which control the content and its delivery — have switched to digital business models and have the network and IT infrastructure to support high-speed transmission, new digital media formats and multi-channel delivery.
IDATE estimates the global content industries market reached 145.5 billion EUR in 2014. On a global scale, 41.2% of revenues came from dematerialized digital channels — nearly twice the results of 2011.
Global ad spending will continue to grow, but more slowly than previously forecast by eMarketer. In 2015, total worldwide advertising spending will reach $569.65 billion. This figure has been adjusted downward from $577.79 forecast in March, due to lower-than-expected ad spending in Latin America, North America, and Western Europe.