Boom time for tablet ownership, plus other media trends
by Keris Lahiff
One in every four Australians will own a tablet computer by 2015, forecasts PricewaterhouseCoopers (PwC). This amounts to a total 5.5 million devices, according to estimates in the Australian PwC Entertainment and Media Outlook 2011-2015
“While tablets may initially be adopted at a rate of one per household, PwC believes that it will be common by 2015 for each household to have multiple devices,” says David Wiadrowski, PwC head of technology, information, communications and entertainment.
The survey, conducted in March 2011, found the most common tasks executed on a tablet include email, web browsing, social networking, playing games and listening to music. More than 25 per cent also said they use tablets to consume media, such as books, newspapers, films and television shows.
“As 3G networks improve, PwC believes the use of tablets will shift to become more mobile devices, used increasingly on the go,” says Wiadrowski.
The rise in tablet ownership, and increasing consumption of media in all its forms, is proving a challenge for the entertainment and media industry, says Wiadrowski.
“Entertainment and media executives are facing a dual challenge: on the one hand engaging empowered consumers – who often expect content for free – and on the other, dealing with culture clashes internally, as enthusiastic digital ‘natives’ enter the workforce and encounter experienced, but sometimes resistant, content creators,” he says.
“We are in a golden age for consumers as entertainment and media organisations look to find new models to meet the needs of empowered consumers who are increasingly time-poor but digital-savvy.”
The Australian entertainment and media industry is growing steadily, expecting to grow 22 per cent over the next five years, slightly ahead of other mature economies, including the US, UK, France, Germany and Japan (each expected to gain 21 per cent). Entertainment and media revenues in the greater Asia-Pacific region is expected to grow 38.6 per cent over the next five years.
“If we are to draw any conclusions from this it is that Australian entertainment and media companies are slow to leverage our geographic advantages,” says Wiadrowski. “Consumer spending on entertainment & media products and services will reach $248 billion by 2015 in the Asia-Pacific region. It is time for Australian businesses to think about how best to share in the boom taking place on our doorstep.”
Estimates pin Australia’s entertainment and media industry to increase in revenue to $37.2 billion by 2015.
One key challenge for the industry is convincing consumers to pay for content.
“The inexpensive nature of most apps combined with the success of the free-to-air digital television channels is reinforcing this expectation,” says Wiadrowski.
For content providers who do not charge, they subsist on advertising, and advertisers are ready and willing to jump onto popular content platforms.
“Advertisers are collaborating with entertainment and media companies to communicate with consumers in innovative ways which include product placement and experimenting with social media platforms to drive consumer engagement,” says Wiadrowski. “Advertisers will pay to appear where the right people are watching, especially if they can interact with them in a personalised way.”
Published on: Wednesday, August 17, 2011