PwC predicts global emergence of 'Convergence 3.0' as services' distinctions blur


MUMBAI: PwC’s Global Entertainment and Media Outlook 2018-22 has predicted global revenues are expected to grow with a CAGR of 4.4 per cent from 2017-22 to $ 2.4 trillion in a digitally-driven world where the distinction between print and digital, video games and sports, wireless and fixed internet access, pay TV and over-the-top (OTT), social and traditional media will blur in what has been described as `Convergence 3.0’.

Explaining the new concept, PwC said that `Convergence 3.0’ is redefining the competitive playing field. Differing from earlier waves of convergence, it’s creating an ever-expanding group of “supercompetitors” and specialized, niche brands that are striving to “secure the engagement and spending of increasingly demanding consumers”.

The fastest growth will be in digitally driven segments, with virtual reality leading the way, followed by over-the-top content (OTT). Esports will be the second fastest-growing segment if it were separated from the overall video games and e-sports segment. By contrast, newspapers and magazines will see declines in revenues to 2022.


While the sector is largely dominated by Netflix, Amazon, and Hulu, PwC said SVOD revenue accounted for 79.6 per cent of OTT revenue in 2017 as niche players increasingly make a dent in the overall business. 

The potential power of artificial intelligence or AI in E&M is further increased by the opportunity to combine it with other emerging technologies, especially virtual reality and augmented reality. Revenues from VR apps, gaming and video, which were US$3.9bn in 2017, are expected to soar more than fivefold by 2022.

The VR revenue is expected to grow at 40.4 per cent CAGR till 2022 in the 10 key markets including US, Japan, China, South Korea, UK, France, Germany, Russia, Italy, Spain. The revenue will be close to $ 170 million.

Even among the most dynamic segments, there are sharp differences among sub-segments. Although the video games and e-sports segment will grow at an overall CAGR of 7.2 per cent, the e-sports component will leap by 20.6 per cent compounded annually. Conversely, global recorded music is projected to rise at a robust 6.1 per cent CAGR, but three of its sub-components – physical, downloads and ringtones/ringbacks – will see significant declines. 

According to Ennèl van Eeden, Global Entertainment & Media Leader, PwC Netherlands: “The story behind the Outlook’s global figures is a near-infinite accumulation of micro-stories, and a dizzying array of different trends, at a territory and segment level. For almost every trend, there’s a counter-trend somewhere among the 15 segments and 53 territories. Also, the pace of change isn’t going to let up: technologies such as artificial intelligence and augmented reality will continue to redefine the battleground. Across all segments, technology is enabling content delivery to become progressively cheaper and more personalised. This heightens the urgency for companies to invest in technologies that will enable them to compete more effectively.”


The global internet advertising revenue is expected to grow with a CAGR of 8.7 per cent from 2017-22 and will be around $ 345 billion, whereas the broadcast TV advertising revenue will grow by CAGR of 2.3 per cent and reach till $180-200 billion.


Smartphone data consumption will see a huge spike and will overtake fixed broadband by 2020, according to the PwC report. Smartphone data consumption will reach around 650,000 billion megabytes with a CAGR of 33.3 per cent from 2017-22. Whereas the fixed broadband data consumption will grow at a CAGR of 18.8 per cent in the same time span and will reach till 500,000 billion MB. 


As people continue to change the way they access content across increasingly sophisticated devices, more robust data is required to build a deeper understanding of consumer habits.

Christopher Vollmer, Global Advisory Leader for Entertainment and Media, PwC US, in a statement said: “To succeed in the future that’s taking shape, companies must revisit every aspect of what they do and how they do it. This means going ‘above and beyond’ in how they envision their business, generate revenues, create and organise their capabilities and build and retain trust. And given the pace and scale of change under way, speed is vital. For many companies, the models, assets, practices and capabilities that support their businesses today will simply not be enough in the future. Standing still is not an option.”

Also Read :

India to enter top 10 OTT video markets in 2022: PwC

Latest Reads

SonyLIV and Amazon Pay partner to offer a convenient and easy digital payment option for viewers

MUMBAI: In its efforts to make payment getaways more convenient for consumers, SonyLIV, India’s first premium video on demand (VOD) platform, has partnered with Amazon Pay, adding another secure payment option on its platform. While the service is already available for the subscribers, the cashback...

iWorld Over The Top Services
ByteDance plans to invest in Indian content startups

MUMBAI: ByteDance, the parent company of popular video sharing app TikTok, has plans to delve deeper into the Indian content market. In order to create a bouquet of apps to target new audiences, the Chinese company will invest in Indian content startups. As per a Mint report, ByteDance has set up a...

iWorld Social Media
Real-life drama series ‘The Loudest Voice’ launches on Hotstar Premium

MUMBAI: Based on a book by Gabriel Sherman, ‘The Loudest Voice’ is a seven-part limited series that brings forth events around the life of Roger Ailes, the former CEO of Fox News. Focusing primarily on the past decade, the series touches on defining moments in Ailes' life, including his experiences...

iWorld Over The Top Services
Jio GigaFiber drops to third position in Netflix ISP Speed Index ranking for June 2019

Reliance led broadband service Jio GigaFiber has dropped to third position as per Netflix ISP Speed Index rankings of June 2019 in India. Earlier it had a speed of 3.53 Mbps which has now dropped to 3.49 Mbps. 7 Star Digital has been ranked as the fastest broadband service in the country with 3.54...

iWorld Over The Top Services
Hotstar dominates OTT reach statistics

Star India-led Hotstar is the chart leader of the Indian OTT market. According to a report by Install metrics, Hotstar has the highest market share of 45.88 per cent as of March 2019. According to another report by Data Intelligence & Management Platform KalaGato, Hotstar leads the reach market...

iWorld Over The Top Services
ZEE5 appoints Yogesh Manwani as head, news & stories

MUMBAI: ZEE5, India’s fastest growing OTT platform has appointedMr. YogeshManwani as Head, News & Stories. Commenting on the new appointment,Taranjeet Singh,Chief Revenue Officer and Business Head, New Projects, ZEE5 Indiasaid, “News is a dynamic space which is constantly changing and evolving....

iWorld Over The Top Services
ZEE5 announces pyschological thriller ‘Posham Pa’

MUMBAI: ZEE5, India’s fastest growing OTT platform announces ‘Posham Pa’, a psychological thriller starring actress Mahie Gill, Sayani Gupta and Ragini Khanna in a never seen before avatar. Directed by national award-winning filmmaker Suman Mukhopadhyay, written by Nimisha Misra and produced by Ten...

iWorld Over The Top Services
Netflix announces five new original series across a variety of genres

MUMBAI: Netflix today announced five new original series across a variety of genres including Young Adult, drama, thriller, horror and comedy. With deadly zombies, scary gangsters and daring friends, these incredibly diverse Indian stories are for mainstream audiences in India and around the world. 

iWorld Over The Top Services
Jio furthers its commitment to reduce gender gap in digital adoption

MUMBAI: Jio, the world’s largest mobile data network, has today announced that it has partnered with GSMA’s Connected Women Initiative to bridge the gender gap in digital adoption and digital literacy among women in India. Jio and GSMA will work towards empowering more women with increased access...

iWorld e-commerce

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories