Turkey’s entertainment and media sector to reach $11.6 billion
ISTANBUL - Hürriyet Daily News
Turkey’s Internet access market is expected to boom over the next five years with revenues increasing from $2.72 billion in 2012 to $7.25 billion in 2017, and mobile Internet services appear to be the main driver of growth.Turkey’s entertainment and media sector is expected to reach $11.6 billion this year, increasing from $10.2 billion in 2012, according to PricewaterhouseCoopers’ Global Entertainment and Media (E&M) Outlook 2013-2017, which was released yesterday.
An annual average of 11.4 percent growth is expected for Turkey’s entertainment and media sector for the next five years, while the same average is 5.6 percent globally in the report, which focuses on digital transformation of the E&M sectors’ key players, including online advertising, Internet services and digital media, among others.
While China, Brazil, India, Russia, the Middle East and North Africa, Mexico, Indonesia and Argentina are expected to see the most growth nearly doubling their share of total E&M revenues between 2013 and 2017. They will account for 22 percent of total global E&M revenues in 2017, almost doubling from 12 percent in 2008. At the same time more mature and technologically advanced markets, within North America, Western Europe and Asia Pacific, will be instrumental in driving the global shift towards digital consumption of E&M services.
Internet boom in Turkey
Turkey’s Internet access market will boom over the next five years with revenues increasing dramatically from $2.72 billion in 2012 to $7.25 billion in 2017, the report said, adding that mobile Internet services would be the main driver of growth due to the mass availability of affordable smartphones and relatively low fixed-broadband penetration. The sector’s revenues will increase at a compound annual growth rate (CAGR) of 36.5 percent from 2012-17 to reach $4 billion, as subscriptions rise at a CAGR of 27.9 percent over the period to reach 47.1 million.
Turkey is also the second-largest Internet advertising market in Central and Eastern Europe, according to the report. Its online advertising spending was $601 million in 2012.
By the end of the forecast period, Turkey’s spending will have risen to $1.27 billion, a CAGR of 16.1 percent. Turkey is an advanced mobile advertising market, which is estimated to reach $82 million in 2017, up from $24 million in 2012, the report said.
Internet ads to reign
The report shows how advertising spending is continuing to migrate to new digital platforms. Though physical media will still account for the majority of E&M advertising revenues by 2017, digital media, thanks to significant growth in Internet advertising, will account for 37 percent of advertising revenues by 2017, up from 26 percent in 2012. The segment is currently worth $100.2 billion and set to reach $185.4 billion by 2017.
Newspapers on rise after fall
Global newspaper publishing revenues from sales and advertising were $164 billion in 2012, down from $187 billion in 2008. However, after a period of decline revenues will remain at 2012 levels for the forecast period. Continued expansion in growth markets will offset the longer-term declines in mature markets. A similar trend will also emerge in consumer magazine publishing, the PwC report said.