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The report also predicts that subscription TV penetration, which reached its zenith in Canada at 81.4 per cent in 2011 and fell to 73.5 per cent last year, will continue to decline and settle at 70.7 per cent in 2020. PwC forecasts that TV subscription revenue will barely increase at all, rising to US$7.66 billion in 2020, from US$7.64 billion last year. The report says over-the-top video services — such as Netflix, Amazon Prime, Shaw and Rogers’ Shomi and Bell’s Crave TV — will see revenues of US$1.62 billion by 2020, and will continue to cause cord-cutting problems for traditional television.

PwC estimates that music industry trends will continue to move toward online streaming, which it says will rise at a CAGR of 27.3 per cent by 2020 as music downloads decline by 10 per cent in the same period. It says the total digital recorded music revenue in Canada was US$252 million in 2015 and that it will be worth US$276 million in 2020.

The Canadian radio market, which has been relatively resilient in recent years and brought in US$1.59 billion in 2015, will be subject to slow growth at 2.6 per cent CAGR to 2020. However, the report says that satellite radio subscription revenue, which was valued at US$262 million in 2015, will grow to US$357 million by 2020 at 6.4 per cent CAGR.

“Globally, revenue across entertainment and media is steadily shifting from publishing businesses to video and Internet businesses — in particular those that provide OTT services and monetize consumer data,” says the report.