Media will struggle to keep pace with inflation
According to forecasts from PwC's annual entertainment and media outlook report, revenue in the media sector is going to struggle to keep pace with inflation over the next five years.
This year, PwC expects the Australian ad sector will grow by 1.6% (unadjusted), with newspapers (-10.8%), magazines (-8.8%), radio (1.2%) and free-to-air TV (0.7%), all falling behind inflation.
The report says the internet will overtake free-to-air TV to become the biggest advertising medium this year, with $3.501 billion compared to FTA TV's $3.315 billion.
PwC technology and communications leader David Wiadrowski told The Australian it was essential media companies, including those that were still shedding jobs, continue to innovate to find new sources of revenue, including subscription and transaction-based businesses.
"There has been a lot of focus on costs and taking costs out," he said. "Has there been enough time and investment put into (developing) new businesses and new revenue streams?"
You can read a summary of the PwC outlook for Commercial Radio, as reported by Eriks Celmins in October, here.
There's also more detail in The Australian here.