NewsMediaWorks has questioned the accuracy of PwC’s 2019-2023 print advertising forecasts contained in the Australian Entertainment & Media Outlook report published earlier this month.
NewsMediaWorks says there is an underlying and unexplained pessimism in the PwC forecasts that negatively impacts market sentiment in dangerous ways.
The newspaper group said PwC forecast accelerating declines in print advertising at a compound annual growth rate (CAGR) of -20 per cent despite having four years of actually lower declines from 2014 to 2018 of CAGR of -11.5 per cent.
NewsMediaWorks CEO Peter Miller said: “A key component in the continued viability of news media is advertising sentiment, which is being negatively impacted by the gloomy PwC print media forecasts.
“NewsMediaWorks has a firm grip on the revenue realities and prospects of its members and we have already successfully managed the transition to digital and have strong and growing audiences across platforms.
“We look forward to reviewing the current forecasts with PwC. ”
A PwC spokesperson told the SMH it stands by its methodology.
“We stand by the methodology used in our local analysis, which takes the Standard Media Index as a base line and incorporates data from other third parties to model five-year industry forecasts,” she said.
“We welcome industry feedback and will engage with NewsMediaWorks to explore their concerns.”