The revenue of Thailand's entertainment and media (E&M) industries will reach 690 billion baht in 2024, representing a 4% increase from the previous year, according to a new survey by PwC.
By 2028, the industry is expected to experience revenue growth to nearly 800 billion baht, driven by streaming and online advertising. Business leaders are advised to adapt to changing consumer behaviours and use Generative AI to analyse new business models, thereby adding new value.
Data from the "Global Entertainment & Media (E&M) Outlook 2024-2028" by PwC predicts Thailand's E&M industry will see 4% revenue growth this year despite the country facing challenges such as an economic slowdown, structural problems, emerging technologies affecting business operations, and geopolitical and industrial competition.
The PwC report, which surveyed revenue data and forecast growth trends for 11 segments across 53 countries and territories, indicated that the total E&M revenue in Thailand will reach 793 billion baht in 2028, representing a 3.5% compound annual growth rate (CAGR).
"This year, Thailand's E&M industry has shown the capability for growth despite facing pressures from the economic outlook and sluggish purchasing power, with some business sectors set to grow significantly in line with changes in consumer behaviour towards the internet and digital platforms," said Tithinun Vankeo, assurance partner with PwC Thailand.
According to the PwC report, over-the-top (OTT) video services (with 27% year-on-year growth to 28 billion baht), internet advertising (up 13% to 58.4 billion) and out-of-home advertising (up 8% to 17.3 billion) are expected to the top three fastest-growing segments in the Thai E&M industry in 2024.
STREAMING PROVIDERS ADAPT
Ms Tithinun said the Covid-19 pandemic led Thai consumers to use the internet more, which resulted in the emergence of OTT media services. Of these, video streaming and internet advertising have become two segments that have continuously grown at a staggering rate.
However, the growth rate is likely to slow down as service providers face increasingly fierce competition in terms of content and the entry of new players, as well as the challenge of enticing consumers to pay more for digital products and services, she said.
"In the next phase, streaming platforms will need to reshape their business models and find new ways to generate revenue beyond subscriptions, including the introduction of ad-based models, lower subscription fees or even the possibility of mergers and acquisitions as competition intensifies," said Ms Tithinun.
According to the PwC report, the average CAGR of OTT media service revenue has dropped from 57% (2019-23) to 10.7% (2024-28) while total revenue is expected to reach 42.1 billion baht in 2028.
ONLINE ADS TOP CHOICE
Internet advertising revenue in Thailand in 2028 is expected to reach 85.2 billion baht, compared with 51.5 billion in 2023, representing a CAGR of 10%. Ms Tithinun said the main reason for this growth is that consumers prefer to use the internet and social media to research and study information about brands, making it an important channel for advertisers to reach their target market.
According to the "Digital 2024: Thailand" report by We Are Social and Meltwater, there were 63.2 million internet users in Thailand at the beginning of 2024, representing an internet penetration rate of 88%. Additionally, there were 49.1 million social media users, accounting for 68.3% of the total population.
"In the medium to long term, Thailand will continue to face risks and uncertainties from ever-changing consumer demands, as well as the impacts of digital transformation and emerging technologies such as GenAI," said Ms Tithinun.
"Business leaders in the E&M industries should seek new business models that arise from these changes. By leveraging technologies such as GenAI to create added value through the production of diverse content that meets the interests of target groups, whether it is producing content on social media, commercial ads or music, as well as analysing new solutions, it will help connect with consumers across all platforms quickly and efficiently."
Globally, internet advertising is the largest and one of the fastest-growing segments of the advertising industry, growing by 10.1% in 2023 and expected to grow at a 9.5% CAGR through 2028, when it is forecast to account for 77.1% of total advertising spending.
To read the full "Global Entertainment & Media Outlook 2024-28", visit www.pwc.com/outlook
