Digitization of the Dutch entertainment and media industry

The Dutch entertainment and media industry increases 6% every year according to the PWC report 'Entertainment and Media Outlook for the Netherlands 2011-2015’. Digitization is one of the reasons for the increase. The digital media is increasing annually by 11,5%, compared to 3,3% for non-digital media. In 2015, the share of digital media is estimated at 33% of the total industry. In 2010, the share was 26%.

PWC identifies three developments in the Dutch entertainment and media industry:

1. Power of the consumer
According to PWC, digitization is the reason that consumers have more power. The Dutch consumer has a leading role when it comes to entertainment and media offerings, including hardware. Therefore, companies need to seek partnerships and have to examine their corporate structure to find out if their business models aren’t outdated, says PWC.

2. Streaming in stead of downloading
PWC stresses the importance for Dutch companies to know why customers pay for content and how they pay for the services. According to the report, a major trend is the shift from 'owning' content to 'renting' content, the shift from downloading to streaming services. Paying for temporary use of a service or content will become increasingly common.

3. Advertisement possibilities
The growth of digital media is important for Dutch advertisers. According to PWC, advertisers handle the growth in the digital sector very well. They try to get in touch with consumers through digital platforms, thereby increasing the effectiveness of advertising. Advertising on company’s site is profitable when companies offer a clear digital service. PWC expects that digital advertising revenue will triple to 23 million euros in 2015 in the Netherlands. Of all the ads, digital ads accounted for 9,2% in 2015. In 2010 the share was 3,6%.

Each year, PWC publishes the 'Entertainment & Media Outlook for the Netherlands'. The report provides an overview of the trends and challenges in the entertainment and media industry in the Netherlands. The report sets out the last five years against the expectations for the next five years.

References: PWC, Mediafacts.nl

By: Karen Groen