The Irish entertainment and media industry is to grow by an annual compound rate of 3.6% between now and 2027, a new report from PwC has predicted.
That would see it valued at over €6.1 billion, up from €5.1 billion last year.
PwC says the growth is largely due to increasing internet access – particularly mobile broadband – and a growth in video on demand subscriptions.
With its Section 481 tax credit incentive, Ireland remains a hub for foreign filmmakers and has been benefitting from the recent global production boom.
Local screen agency Screen Ireland reported that filmed entertainment generated €500m in inward investment in 2021. Total Irish cinema revenue is set to reach €161m by 2027, significantly up on the 2019 pre-pandemic figure of €124m.
The country’s music and radio market generated €379m in 2022, an increase of 32% from €286m in 2021.
The largest segment of the Irish music and radio market is Live Music which accounted for 44% in 2022, a growth rate of 107% since 2021 when revenues from live music were only starting to recover post-pandemic.
Though this growth rate is expected to drop significantly, live music revenues in Ireland are expected to continue to grow at a 6.1% CAGR, which is above the global rate of 4.6%.
But today’s report also found that Irish newspaper market, which was worth €379m in 2022, will fall to €288m in 2027.
PwC said that digital revenue will rise from €88m to €113m over the next five years but will not be able to outweigh the decline in print from €291m to €175m over the forecast period.
Meanwhile, consumer magazine revenue in Ireland is forecast to fall from €40m to €34m by 2027.
PwC said there will be declines across the board, with digital falling from to €16m, and print contracting to €18m, between 2022 and 2027.
The print sector will be weighed down by the rising costs of paper and production of physical magazines, it added.
Amy Ball, Partner, PwC Ireland Entertainment & Media Practice, said robust growth in the entertainment and media industry has been seen over the past two years following a surge in demand for digital products during Covid-19.
“Increased reliance on mobile and digital technologies, heightened industry competition, an evolving regulatory environment and disruptions posed by new and emerging technologies will create new tensions and possibilities in the years ahead for the sector,” Ms Ball said.
“If Irish companies are to retain market share and drive growth, industry leaders will have to be more creative about how they create, distribute and monetise products and services, while remaining cognisant of an evolving global regulatory and geopolitical environment increasingly conscious of data privacy,” she added.
Today’s report also reveals that developments in generative AI will be particularly disruptive to the Entertainment & Media industry, particularly in the Internet advertising space.
“Big Tech companies have announced that they will use generative AI to create adverts and produce advertising campaigns similar to those created by marketers using the technology in the near future. These companies must play a role in safeguarding information and ensuring that consumers’ privacy rights are upheld,” PwC stated.
Conor Forde, Director, PwC Ireland Entertainment & Media Practice, said that entertainment and media companies must play a role in safeguarding information and ensuring that consumers’ privacy rights are upheld.
“The EU AI Act is currently under examination by the European Data Protection Board and will soon come into effect. As organisations assess their approach to Generative AI, they will need to identify and adhere to responsible AI principles by addressing critical risks related to transparency, privacy and consent,” he added.