The Show Must Go On
With revenues forecast to top $2.2 trillion by 2021, the entertainment and media industry provides a huge opportunity for print providers.
For PSPs serving the entertainment and media (E&M) industry, navigating the waters can be challenging, but the opportunity for savvy companies in this space can be substantial.
The E&M industry has multiple segments that combine into one vertical, which includes the fields of theater, movies/cinema, fine art, dance, opera, music, literary publishing, internet, gaming, television, and radio.
According to PwC’s 18th annual Global Entertainment and Media Outlook 2017-2021, global E&M revenues are expected to rise from $1.8 trillion in 2016 to $2.2 trillion in 2021 at a compound annual growth rate (CAGR) of 4.2%. By comparison, PwC’s 2017 Outlook expects U.S. E&M revenues to reach $759 billion by 2021, up from $635 billion in 2016, increasing at a CAGR of 3.6%.
Within E&M, out-of-home (OOH) ad revenue is expected to rise from $9.2 billion in 2016 to $11 billion by 2021 (3.7% CAGR). This spells opportunities for companies partnered with E&M brands or those looking to move into this market segment.
Earlier this year, NAPCO Research surveyed marketers that purchase or influence decisions regarding sign and display graphics to uncover buyer needs, purchasing criteria, and areas of opportunity. (Read more about the overall results beginning on page 24.) Within this survey, however, E&M brands weighed in about their needs.
While the biggest increases of brand spending for the next 12 months are in social media, online media, and SEO/SEM, 22% of brands are expecting to increase their spend for printed signs and display graphics. There is also an increased demand from brands for signs, banners, and posters (34%), and for point-of-purchase and sales displays (20%). The top graphics purchased by brands include banners (73%), signs (64%), posters (59%), photography (41%), POP/POS displays (30%), package prototypes and mockups (30%), backlit displays (23%), window graphics (22%), billboards (19%), and vehicle wraps (16%).
Interestingly, the top three applications where E&M brands are looking to increase their spending are vehicle graphics (40%); textiles (including soft signage and apparel) (38%); and packaging samples, prototypes, and mockups (37%). It’s interesting to see textiles up near the top, especially because it’s not included within the current top 10 brand spends. There is a huge opportunity in this space for PSPs knowledgeable and skilled in digitally-printed textiles. According to figures released by HP during the launch of its new Stitch line of textile printers, the textile industry as a whole represents a $1.7 trillion market size (retail value by 2023) with the textile printing market representing $308 billion market size (retail value by 2023). The digitally-printed textile industry, by 2023, should represent $3.6 billion in retail value. To find out what PSPs are doing in the E&M space, turn to the article starting on page 34.
As the E&M segment continues to grow, there is also a growing opportunity for PSPs to partner with E&M brands for sign and display graphic products.
If you’re already working with E&M brands, what other services can you offer? As you page through this issue, see how all of the different digital print technologies can offer you opportunities in this space.
Denise Gustavson is the Editorial Director and Special Projects Editor for the Printing & Packaging Group, which includes Printing Impressions, packagePRINTING, In-plant Graphics and Wide-Format Impressions magazines, among other brands. She is also the Editor-in-Chief of Wide-Format Impressions.