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Others 'Global entertainment, media industry to grow at 6.6% CAGR'

'Global entertainment, media industry to grow at 6.6% CAGR'

Author | Source: Business Line | Wednesday, Jul 05,2006 7:29 AM

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'Global entertainment, media industry to grow at 6.6% CAGR'

Expansion of broadband households to spur growth

The global entertainment and media (E&M) industry is expected to grow at a 6.6 per cent compounded annual growth rate (CAGR) to $1.8 trillion in 2010, according to PricewaterhouseCoopers' Global Entertainment and Media Outlook: 2006 - 2010, released last week.

"New revenue streams are growing rapidly, physical formats are still important but growing more slowly, and availability of licensed digital distribution services is providing consumers with an authorised alternative to piracy," the report said.

Global spending through online and wireless channels reached $19 billion in 2005 and will increase to $67 billion by 2010, the report said.

"Virtually every segment of the entertainment and media industry is shifting its distribution of content from physical to digital distribution channels," the report said, quoting Mr Timmy Kandhari, Leader, Entertainment & Media Practice, PricewaterhouseCoopers. Expansion of the broadband household universe will be a major growth driver, and wireless subscriber growth and rollout of next generation handsets and high-speed wireless networks will stimulate mobile markets. In 2005, the broadband universe stood at 187 million households, up from 30 million in 2001.

By 2010, there will be an additional 246 million broadband households, bringing the total to 433 million globally. The number of people with a wireless telephone subscription is also growing rapidly, with a total of 1.8 billion globally in 2005. That figure will rise to 2.8 billion by 2010, adding one billion potential customers to mobile content during the next five years. According to PWC, piracy's impact on sales will reduce.

Advertising

Global advertising will increase at a 6.2 per cent CAGR during the forecast period, to $521 billion in 2010 from $385 billion in 2005. "Growth improvement achieved during the past two years will be sustained through 2008, but more moderate increases are projected during 2009-10 as the current economic recovery in many countries begins to falter," the report said.

The Internet will remain the fastest-growing advertising medium, at an 18.1 per cent CAGR to $52 billion in 2010. The Internet will constitute nearly 10 per cent of global advertising in 2010 compared with less than 3 per cent in 2002.

Although most countries in the region enjoy growth exceeding the global average, it is China (CAGR 18 per cent) and India (CAGR 15.1 per cent) that continue to drive the region. "The spectacular growth in India and China is the big story amongst entertainment and media professionals both locally and internationally," said Mr Kandhari. With no segment growing by less than 3.8 per cent CAGR, Asia Pacific will be the only region with no slow-growing segments during the next five years.

Tags: e4m

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