Australian entertainment and media spending grew by 4.5% in 2013, below the global average, and the sector’s growth rate is projected to be even lower in the next five years.
Pay-TV penetration has been stuck below 30% of Australian homes for years- but PwC predicts a massive upswing in subscriptions.
Despite the fragmentation of audiences and blossoming of online services, commercial free-to-air broadcasters are likely to see a modest increase in advertising revenues.
Box-office revenues are likely to surpass physical home entertainment sales next year but the overall Australian filmed entertainment market can expect minimal growth in the next five years.
Screen Australia CEO Ruth Harley has made the case for Australia to move eventually to a new, flexible film distribution model, similar to the US and the UK.
The overall Australian entertainment and media market is projected to grow steadily over the next five years, driven primarily by the online and subscription TV sectors.
The proliferation of streamed subscription-based film and TV rental services will make life tougher for free-to-air broadcasters, according to PwC's Australian Entertainment and Media Outlook 2013-2017.
After being stuck at around 30% since 2008, pay-TV penetration of Australian households is forecast to reach 35% by 2017- but most of that growth will come from IPTV services, not Foxtel.