Mobile internet services, online advertising and video streaming subscriptions will drive “robust” expansion in the Irish entertainment and media industry over the next five years, according to a report by PwC.
The Irish entertainment and media industry is set to grow 2.9 per cent annually, the professional services giant forecasts in its latest outlook, which covers the period 2024 to 2028.
As a result, the Irish industry will reach €7.6 billion in size in 2028, up from €6.6 billion in 2023.
The rate of growth lags the global average, which is expected to be a compound annual growth rate of 3.9 per cent over the same five years, taking industry revenues to €3.1 trillion.
The report examines sectors including connectivity services, internet advertising, music, radio and podcasts, cinema, newspapers, consumer magazines and books, out-of-home (OOH) advertising, video-on-demand, traditional television and video games.
Despite economic headwinds, technological disruption and increased competition, the Irish entertainment and media industry demonstrated “resilience and growth” in 2023, PwC said, with total revenues rising 4.8 per cent.
But projected growth over the next five years falls short of the global average, primarily as a result of slower expected growth in the video gaming segment.
“As the global entertainment and media industry continues to grow, market players face both risks and opportunities. Shifts in consumer preferences, and uncertainty around the continued impact of digital transformation and new and emerging technology such as generative AI, are inspiring a wave of business model reinvention,” said Amy Ball, partner in PwC Ireland’s entertainment and media practice.
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Conor Forde, director of the practice, said the use of generative AI in the industry had focused to date on speed and efficiency.
“As we look ahead, the industry will have to focus on how generative AI can lead to greater value creation in a safe and secure way and in compliance with the new EU AI Act through experimenting, iterating, and scaling new solutions and processes,” he said.
The report predicts that revenue garnered by mobile internet services will reach €1.6 billion by 2028 and that 5G will become the primary mobile access technology by next year. Online advertising revenue will reach €1.8 billion by the end of the period, driven by growth in video advertising.
The video-on-demand market, meanwhile, has more than doubled in size since 2019, reaching total revenue of €196 million in 2023. This will increase further to €299 million by 2028, PwC forecasts.