Survey: HK entertainment and media revenue up 5.6% YOY in 2023

Hong Kong entertainment and media (E&M) revenue is expected to see a slight increase of 5.6% year-on-year to US$9.76 billion in 2023, PwC’s latest survey found.

According to the Global Entertainment and Media Outlook 2023-2027, PwC’s projections showed that the E&M growth in Hong Kong will be steady, as its revenue will be dominated by consumer spending (60.9%) by 2027, the conversion trend is in line with the global market (66.2%) excluding China. 

Explaining on the phenomenon, the report said that the rise of digital platforms and streaming services has led to a shift in consumer behaviour, with more people opting for digital content over traditional media such as print and television. Many E&M companies in Hong Kong are shifting towards subscription-based models, which has led to a decline in revenue from sales of physical media.

Box office revenue in Hong Kong is expected to rebound in 2023, recovering from the sharp drop (-6.6%) in 2022. The report said a variety of high quality local films were broadcasted during 2022, which accounted for a healthy market share of 29.5% such as Table for Six (飯戲攻心) and Warriors of Future (明日戰記). Due to the impact of the pandemic, Hong Kong audiences have started to support local film production. For example, local movie A Guilty Conscience (毒舌大狀) grossed US$14.6 million. The total cinema revenue is forecast to rise at a 13.3% CAGR over the forecast period to US$273 million by 2027 – up from the US$146 million achieved in 2022. 

In terms of business-to-business (B2B), PwC estimated that the CAGR will reach 7.2%, which outperforms the global market’s 2.9%, as driven by trade shows. After the quarantine measures for inbound travellers were lifted in September last year, it is expected to grow by 44.6% in the coming year. Hong Kong’s trade shows’ revenue will grow at 13% CAGR, to reach US$548 million in 2027 from US$303 million.

On the other hand, PwC said the total revenue in the internet advertising market in Hong Kong was US$1.6 billion in 2022 and will grow at a 6.4% CAGR to US$2.1 billion by 2027. It said the growth will slow over the forecast period, reflecting a mature market. Fixed broadband penetration reached 117% in 2022, and mobile Internet penetration hit 90%, the joint highest in the APAC alongside Japan.

The outlook showed that Hong Kong’s OTT market expanded 24.1% in 2022 to reach total revenue of US$305 million. Revenue will increase at a 8.8% CAGR to reach US$465mn by 2027. It added that subscription streaming platforms has dominated the OTT market in Hong Kong, taking over 90% of revenue in 2022. This is set to grow further with new launches and households taking multiple services, accounting for 93% of revenue in 2027.

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