Friday, June 22, 2007

Asia Pacific fastest growth in entertainment/media

According to PricewaterhouseCoopers' Global Entertainment and Media Outlook: 2007-2011, the global entertainment and media (E&M) industry is estimated to increase at a 6.4 percent compound annual growth rate (CAGR) to $2 trillion in 2011. Entertainment and media (E&M) spending in BRIC (Brazil, Russia, India and China) countries will account for 24 percent of global growth in the sector during the next five years with increase at a 14.7 percent CAGR (compound annual growth rate). Led by India and China, the E&M spending in BRIC is expected to expand from $127 billion in 2006 to $251.5 billion in 2011. That gain will be nearly three times the projected 5.5 percent compound annual increase for the rest of the world.

"The surge in broadband and wireless adoption is generating new digital revenue streams across multiple segments," explained PWC Global Managing Partner for E&M, Marcel Fenez. "Broadband growth is driving online advertising while the proliferation of next- generation wireless devices designed to play digital music, video games and receive TV programming is fueling mobile distribution. For example, Asia Pacific spending on distribution of television programming on mobile phones is expected to reach $6.5 billion in 2011 from just $26 million in 2006."

Asia Pacific will have the fastest-growing region during the next five years, with double digit increases in internet, TV distribution, casino and other regulated gaming and video games. Spending in Asia Pacific will average 9.6 percent annual growth, increasing from $297 billion in 2006 to $470 billion in 2011. India will be the fastest growing during the next five years at 18.5 percent CAGR while China will continue to record double-digit annual gains that will average 16.8 per cent CAGR.

Middle East/Africa (EMEA), the second largest market, will expand at a 5.5 percent CAGR to reach $617 billion in 2011. Led by Saudi Arabia/Pan Arab and South Africa, Middle East/Africa will continue to be the growth region, averaging 8.5 percent CAGR during the forecast period. TV distribution, Internet advertising and access spending and video games will be the fastest growth segments for EMEA, averaging double-digit CAGR during the next five years.

Sports increased 12 percent in 2006, the largest increase during the past five years, buoyed by the FIFA World Cup, the Winter Olympics, and the return of the National Hockey League in North America. Competition in the TV distribution market is fueling demand for TV rights fees, leading to record deals. Spending in the sports segment is expected to increase from $96 billion in 2006 to $124 billion in 2011, at a 5.2 percent CAGR.

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