According to PwC research, the national sectors of the segment should grow 5.7% per year until 2026
In recovery since last year, due to the greater control of the Covid-19 pandemic, the Brazilian entertainment and media industry should close 2022 with revenues of US$ 33 billion. Data are from the 2022-2026 Global Entertainment and Media Survey, organized and released by PwC Brasil.
The survey also pointed out that the sum of revenues from the national sectors of the segment should grow at a rate of 5.7% per year until 2026, an index that is higher than the global growth projection of the industry, which is 4.6%. The percentage is also higher than the projection made for Brazil by the edition of the same study last year, when it indicated a rate of 4.7% until 2025.
The study looked at 14 sectors of the entertainment and media industry in Brazil and around the world, totaling 52 territories, to conclude the research. Among the analyzed markets are books, cinema, internet advertising, music, radio and podcasts, newspapers and magazines, video streaming, TV, traditional advertising, games and eSports.
The cooling of the pandemic made it possible to consume a dammed demand for live shows, for example. After the difficulties of isolation, people were in need of seeing their favorite artists, which moved the economy. This is a sector that boosted growth projections, said PwC Brasil partner Ricardo Queiroz.
The pandemic meant that the events market needed to reinvent itself to the new consumption habits of Brazilians and, consequently, advertising as well, since the period of isolation made the public demand more of digital products, such as audio streamings and of videos.
In 2020, advertising revenue fell by 10.5% due to the health crisis, but in 2021 the sector has already recovered by 13.8%. Now, PwC’s forecast for 2026 is 5% annual growth. Consumer and leisure activities are increasingly digital, which should expand opportunities for retailers and digital marketing in general, analyzed Queiroz.
Streaming and cinema
If the audiovisual stars were streaming over the past two years, PwC research points out that revenue from the habit of watching movies and series at home should slow down by 2026.
Despite this, the study showed that the sector continues to have significant results in Brazil and that revenue growth in the domestic market in 2021 was 29%. According to the analysis, this rate indicates revenues of US$ 855 million in the country and, for the coming years, growth of 9.8% per year is expected. Worldwide, this value rises to US$ 79.1 billion.
The survey also pointed to a recovery in the national cinema market in the coming years. In the world, the revenue of US$ 45 billion, recorded in 2019, should return in 2023. In Brazil, the recovery should happen in 2026, when the sector will earn US$ 681 million.
What we have noticed are the platforms diversifying the way to acquire revenue. A clear example is the creation of cheaper plans with advertising between the contents. In any case, we are still seeing the arrival of new competitors even though large companies are already consolidated in the video-on-demand market, said Queiroz.
Streaming has impacted traditional TV, which has also been trying to reinvent itself, but the sector will remain stable in Brazil and revenue should remain around US$ 3.1 billion in the country until 2026.
Brazil in the ranking of games
Another data presented in the survey was that social and casual games account for 66.2% of the total revenue from videogames and electronic sports in Brazil, reaching US$ 928 million in 2021, a volume that represents a growth of 40.6% in relation to to the previous year and which tends to remain strong, but slow down to 12.7% by 2026.
Even so, Brazil maintains a prominent position in Latin America, ahead of Mexico in 2021 and will account for 47.4% of the region’s total revenue by 2026.
There is another interesting point to note about gaming. With immersive and virtual experiences, a path is paved for the metaverse and the next generation of digital advertising, entertainment and brand experience. It is still a timid movement in Brazil, but which we must put into perspective in the coming years, Ricardo Queiroz pointed out.
According to PwC research, total revenue projections for video games and eSports indicate that the domestic market should earn US$ 2.8 billion in 2026, increasing at an annual rate of 15.2%. In the world, the perspective for the same period is US$ 323.5 billion, with a lower growth rate than in Brazil, 8.4%.
Additionally, the 2026 expectation is that mobile gaming will occupy nearly 100% of the social/casual market by 2026, with growth driven primarily by increased smartphone penetration and a rapidly expanding in-app gaming advertising sector.
In this context, the Brazilian e-sports market is expected to nearly triple from a base of US$5.4 million in 2021 to more than US$15 million in 2026, equivalent to an increase of 22.7% CAGR .
This movement is expected to be mainly driven by significant increases in media rights, from US$1.7 million to US$3.9 million, and sponsorship, from US$1.6 million to US$3.8 million, during the period forecast.
Among the fastest growing segments are ticket sales and consumer contribution, with increases of 48.2% CAGR and 47.3% CAGR respectively, although this is due to the impact that Covid-19 has had on these segments, causing huge losses in 2020 and 2021.
Released this Wednesday (7), the Cenp pointed to growth of 11.85% in the first three quarters of 2022. Between January and September, the sector’s revenue was R$ 13.6 billion compared to R$ 12.2 billion in the same period of last year.
Among the highlights are the internet and out-of-home media. The first, which last year earned BRL 3.6 million, increased to BRL 4.4 million in 2022. OOH, one of the sectors most affected by the pandemic, increased from BRL 992 thousand to BRL 1 .4 million (see more in the table below).
