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The Argentinian industry of media and entertainment, among the most promising in the world

The Argentinian industry of media and entertainment, among the most promising in the world

Posted by Clarisa Herrera on June 24, 2014

Along with China, Brazil, Russia, India, Mexico, South Africa, Turkey and Indonesia, Argentina is among the countries with the most development potential of their entertainment and media industry towards 2018, driven mainly by a growing middle class land their bigger use of the internet according to the records of the report Perspectives of the Entertainment and Media Fields 2014-2018 written by PwC. However, the ways of traditional entertainment are not giving up and are also in the fight, which shows until what point the way of consuming gets divided instead of leaving the old things aside and keeping the new things only.

But let’s look at the data. The growth phenomenon of the internet in Argentina is remarkable, according to Internet World Stats, this is the country with biggest penetration of the region: 66.4% of its population use the internet, Colombia is next with 59.5% and Chile with 58.6%. If we go to the World Bank’s records the scenery stays similar, the internet penetration map is dominated by led by Chile with 61.4% followed by Argentina and Uruguay with 55% each, Colombia with 49.8% and Brazil with 49%.

Mobile internet is another indicator that has been growing, according to PwC, the amount of users of mobile internet stayed in 10.9 millions in 2013 (26.3% of the population) and it will increase until it reaches the 26.2 millions by the end of 2018. It is worth noting of an evil that exists in Argentina: a big inconvenient that mobile internet has is the bad functioning of the 3G network (due to a saturation of the available networks’ spectrum) and because there are no improvements in the tender of the 4G LTE broadband mobile network.

How do argentinians entertain themselves?

Online videos are an obsession for Argentinians, why? Argentinian users are first on the world wide ranking of consumption of online videos: they reach 95% of the total online population according to the data of ComScore. And there’s more, PwC affairs that the video publicity is another indicator that will exponentially grow at a rate of 35.5% between 2013 and 2018, the segment of internet publicity with the highest growth rate.

One of the reasons of this growth has to do with the penetration of smartphones. The increase of mobile phones in Argentina is vertiginous. Until 2013 there was an estimate of 35 millions of active lines taking into account a population of about 40 million people. According to the data of the consulter Kantar Wordpanel the sale of smart phones represents the 47% of the total purchase of mobile phones in the last trimester of 2013, and in the same period of 2012 this percentage was of 34% and in 2011 of 25%.

And there is a bigger fever for phones. Argentina is one of the countries, that when the time comes to consume online content in front of a screen they prefer smartphones (166 minutes) over TVs (104 minutes), computers (114 minutes) or a table (30 minutes) according to Internet Trends 2014 Code Conference by Mary Meeker.

But to be more precise, there is an online phenomenon that rules over the rest: when the time comes to have fun, Argentinians prefer videos that violate their intimacy. According to an investigation, the segment of more growth projection in Argentina are home made videos. If you compare this with movie tickets for example, the difference is shocking: between 2013 and 2018 the total revenues of home made videos grew from US$ 71 millions to US$34 millions and they exceed the total revenue of cinema tickets, even though they will also grow, it will be at less surprising rate of 8.5%, reaching the US$ 318 millions in 2018.

Video games are another subject Argentinians are attracted to: this market had revenues of US$ 100 millions in 2013 and it is foreseen that it will reach the US$ 171 millions in 2018. In the same way, the revenue for console games will increase from US$ 18 millions to US$ 27 millions between 2013 and 2018.

Argentina, is also famous because of its market of live music, artists and international bands are very interested in this country when it comes to organizing their international tours and the local audience doesn't disappoint: this area will register a growth of 9% which will increase total revenues taking them from US$ 5 millions to US$ 85 millions between 2013 and 2018.

But there is also a place for traditional media. As for the radio, the Argentinian market is among the oldest in the world, with currently more than 1,200 radio stations and the most striking fact is that while many diagnose the death of this media, total revenues of the segment tripled between 2009 and 2013, representing a growth of two digits in the nominal GDP. In 2013 those revenues reached US$ 165 millions and they are expected to have a continuous growth at a rate of 13.7%, reaching the US$ 314 millions in 2018.

Paid TV is one of the stars of entertainment of Argentinians because it has been showing exponential growth since several years ago, in 2013, it closed an extraordinary year in terms of consumption. The penetration of paid TV grew in 2013 and exceeded its own record of 80% in all the targets that constitute a media of mass access among the population. The share of the audience of paid TV grew significantly in 2013 and it came close to 50% in the different analyzed targets, in that way Paid TV already reached a historic boundary in terms of consumption: half of the time destined to consuming television. The data comes from the survey done by LAMAC (Latino American Council of Publicity in Multi channels of Paid TV) that indicates that this same number is record in Latin America.

Air television doesn't fall behind. Publicity in this media experiences a sustained  solid growth according to PwC and it managed to reach a revenue of US$ 2,100 millions in 2013. It is estimated to continue at an average annual rate of 12.2% with increasing expenses in TV publicity until it reaches US$ 3,700 millions in 2018.

Finally, the graphic press is still in the fight and Argentinians buy it. If well the report of PwC foresees a fall in the circulation of paid newspapers of 4.6%, free newspapers’ circulation will grow at the same rate (4.7%) which shows that as always the Argentinian public, is constantly interested on being informed. On a different note, the segment of magazines seems to be going through a good time despite that again, many diagnose the death of paper: the total revenues of this magazine media (consumption and commercial), will go from US$ 521 millions to US$ 634 millions between 2013 and 2018, with a growth rate of 4%. 

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