About the Outlook
Like many other countries, Switzerland made a strong recovery from the COVID-19 pandemic in 2021. As lockdown restrictions were loosened or removed entirely, the Swiss entertainment and media (E&M) sector has achieved robust growth, with total revenue up 7.6% year-on-year.
Industries that were more severely impacted in 2020 such as live music and cinema made strong comebacks, though they are still below their pre-pandemic levels. Meanwhile, sectors such as video games and over-the-top video have risen to new heights after thriving under lockdown conditions. They are now outperforming pre-pandemic forecasts.
This report will go into more detail about the outlook for the E&M market in Switzerland until 2026 in 13 different segments.
SEMO 2023 is now available
The Swiss Entertainment & Media Outlook in numbers
.2 Mrd. CHF
entertainment and media revenue
+.2%
VR and AR revenue compared to last year
- .6%
newspapers and consumer
magazines decline in revenue until 2026
1. Mrd. CHF
video games revenue
+,5%
Internet advertising revenue compared to last year
2.x
increase in cinema revenues over the forecast period
Segment highlights
Business-to-business
The business-to-business (B2B) segment has bounced back, fuelled by the enthusiastic return of in-person trade shows and the resilient business information category. However, the outlook is less promising for other parts of this key segment.
Cinema
After shutting down for most of 2020, the cinema industry has roared back into action with the delayed releases of big-name blockbusters. But with audiences ever more accustomed to streaming services, will they come back to theatres?
Consumer books
There are mixed fortunes here. Will the rise in e-books and audiobooks be enough to offset the long-term decline in print editions? And will COVID-19 emergency funding and the return to in-person book fairs be enough to return this sector to growth?
Internet access
Switzerland’s 5G rollout is storming ahead, generating exciting opportunities for new use cases such as gaming and immersive technology. Elsewhere, we’re seeing telco operators launch new services and brands in their efforts to gain market share and reduce churn.
Internet advertising
As our world has moved – and stayed – largely online due to the pandemic, a huge share of the advertising market has followed suit. As growth soars, this sector is brimming with exciting opportunities.
Music and radio
Live music is back, but it’s a shadow of its former self, as revenues remain well below pre-pandemic levels. Does the future lie in streaming services or even virtual gigs in the metaverse?
Newspapers and magazines
Newspaper publishers are struggling, as rising digital revenue fails to make up for the decline in print. At the same time, tech giants are gaining ever more ground. But the game’s not over yet, as publishers have some innovative tricks up their sleeves.
Out-of-home
The pandemic was a setback for out-of-home (OOH) advertising, but this sector is getting back on its feet. With an explosion in digital advertising, fancy cutting-edge technology and some high-profile deals being signed, we’re seeing a new future unfold.
Over-the-top video
The over-the-top (OTT) video sector achieved spectacular growth during the pandemic. But as new players emerge and the market approaches saturation, providers must innovate to defend their share of consumers’ attention and wallets.
Traditional TV and radio
Intense competition is spurring rapid innovation – including new streaming services, bundled offerings and payment models. But although the market is highly saturated, companies are coming up with new ways to grow revenue.
TV advertising
As audiences switch from linear viewing to on-demand content, traditional TV advertising is declining. But fresh hope comes in the form of ad-supported video-on-demand platforms, as well as a new generation of ads geared towards on-demand viewing.
Video games
This sector is turning heads, as the impressive growth achieved during the pandemic is set to continue. With new consoles, the delayed release of long-awaited titles and a strong uptake of mobile gaming, the future is looking bright.
Virtual and augmented reality
As the dawn of the metaverse coincides with the emergence of better headsets, this is one sector that people can’t afford to take their eyes off. Groundbreaking use cases are evolving, spanning everything from advertising and fashion to gaming. And Switzerland is at the heart of metaverse development.
“Going forward, we can expect big developments to take place in Switzerland regarding the metaverse, especially as Meta, Google and Microsoft have all concentrated their metaverse activities in Zurich.”
Executive summary
This overview summarises the most important findings across each of the 13 sectors explored in the Switzerland Entertainment & Media Outlook 2022 report.
Contact us
Bogdan Sutter
Director Advisory, Strategy and Digital Change Expert, Bern, PwC Switzerland
Tel: +41 58 792 77 51
