The value of the Polish entertainment and media market will grow by 6.6% y/y to PLN 48.1 billion in 2023, placing our country in a leading position in the Central and Eastern European (CEE) region in terms of the value of revenues from the sector, according to the Polish edition of the “Global Entertainment & Media Outlook 2023-2027” report prepared by PwC Poland. Between 2022 and 2027, the average annual growth rate of E&M market revenues in Poland will be higher than that in the world, at 4.6%, while globally the sector will grow by 3.6% year-on-year.
Revenues from the traditional TV market, currently the largest sector in the Polish E&M market (PLN 12 billion), this year overtook revenues from Internet access (PLN 11.2 billion), which fell to second place. Revenues from the third largest sector, telecommunications, amounted to PLN 6.3 billion. The average revenue growth rate of the Polish entertainment and media industry will be 4.6% per year and cinemas will be 10.8% (the highest average growth rate in the entire E&M market), it said.
According to PwC, in 2023, both in Poland and globally, revenues from various forms of advertising will account for 14% of total entertainment and media market revenues. The fastest growing segments of the entertainment and media market in Poland and globally between 2022 and 2027 are internet advertising – 8.6% in Poland and 6.5% globally, internet access – 5.8% in Poland and 4% globally, and TV and video – 1.6% in Poland and -0.3% globally.
“In Poland, the largest sectors in the entertainment and media industry in terms of revenue are Internet advertising, TV and Internet access. In turn, each of them has a 21%, 20% and 14% share of the projected revenue in the market in 2023. The three largest sectors in terms of revenue in Poland, are also the sectors that are growing more rapidly compared to global projections of the average annual revenue growth rate. In the Polish entertainment and media market, television has for many years held the top spot in terms of industry revenues. The strong position of television will continue until 2025, and the position of market leader in terms of revenue will be taken by the Internet access sector,” said PwC Poland partner, Telecommunications, Entertainment and Media Services team Pawel Wesolowski.
The report also shows that in 2025 in Poland, Internet access revenues will account for 22.7% of all revenues in the entertainment and media market, allowing the Internet access sector to become the largest segment in terms of revenue in the Polish entertainment and media market. Revenues from the Internet access sector will then amount to PLN 12.5 billion, while television revenues will reach a lower figure of PLN 12.4 billion. This allows the Internet access sector to take the leading position in terms of the amount of revenue in the Polish entertainment and media market, which will gradually grow.
The authors of the report pointed out that the projected 5.8% increase in revenues over the forecast period shows that the Internet access segment is growing rapidly, and the advantage over other segments will increase. The deployment of 5G networks and fiber-optic connectivity is accelerating the boom in data consumption, which is growing in parallel with the demand for ever-increasing network capacity and bandwidth efficiency. All this, along with changes in audience consumption behavior, is driving revenue growth in the Internet access segment.
According to the report, the Polish Internet advertising market is developing most dynamically in the whole of Central and Eastern Europe, with total revenues in Poland reaching PLN 7 billion in 2022 and growing at a CAGR of 8.6% to reach $10.6 billion by 2027. The mobile advertising sector dominates the market, accounting for 58.2% of total advertising revenues in 2022. Total mobile Internet advertising revenues in Poland amounted to $4.11 million in 2022 and will grow, at a 10.5% CAGR, to $6.7 billion by 2027.
In the wired advertising sector, revenues are expected to grow at a 5.7% CAGR to reach PLN 3.9 million by 2027, compared to PLN 2.9 million in 2022. The fastest growing sector will be mobile video display, with a 19.4% CAGR. Video is a popular content format, and according to GWI data, 90.2% of Polish Internet users between the ages of 16 and 64 watch online video every week, it stated.
The report showed that total Internet access revenues in Poland will grow at a 5.8% CAGR, well ahead of the global average of 3.9% CAGR, from PLN 10.4 billion in 2022 to PLN 13.7 billion in 2027.
Poland’s telecommunications market is dominated by mobile revenues, which will account for 81.7% of total Internet access revenues by 2027. Poland’s 40 million smartphone users, two-thirds of whom will migrate to 5G connections by 2027, will help boost mobile Internet access revenues at a rapid 6.8% CAGR from PLN 8.1 billion to PLN 11.2 billion between 2022 and 2027. The country’s small broadband market, will grow at a 1.9% CAGR and be worth PLN 2.5 billion by 2027, it was also reported.
All data, charts and graphs are based on the 24th edition of the Global Entertainment & Media Outlook 2023-2027 report, which provides a five-year outlook for 13 entertainment and media market segments in 53 territories around the world.
Source PwC and ISBnews
