Entertainment firms the ones to watch
According to the PricewaterhouseCoopers' (PwC) report, Global Entertainment and Media Outlook: 2005-2009, the media and entertainment (M&E) industry will increase at a 7.3 percent compound annual growth rate to $1.8 (zł.6) trillion in 2009.
Among the key drivers triggering end-user spending, the report enumerates improved economic conditions and an advertising upswing, combined with expanding online distribution of music, films, books and video games. The new spending will further be spurred by the popularization of broadband internet and wireless technologies.
"The entertainment and media industry continues to display an extraordinary ability to reinvent itself and create new revenue streams through innovative offerings that barely existed as recently as 2000," said Wayne Jackson, global leader of PwC's entertainment media practice. "Online and wireless video games, online film rental subscriptions, licensed digital distribution of music, and the rapid adoption of ring tones and mobile music downloads are becoming critical components of the industry and driving significant revenues across all regions," Jackson added.
The US remains the largest M&E market but not the fastest-growing one. It has been outpaced by Asia/Pacific where China is on track to overtake Japan as the region's entertainment giant by 2008. Spending growth in China will be the highest in the world, at a 14.2 percent compound annual growth rate excluding internet access spending, and 25.2 percent if internet spending is accounted for.
"We're forecasting healthy growth in [the Europe-Middle East Area] EMEA with double-digit increases in video games, including console games, handheld games, PC games, online games, and wireless games, as well as internet advertising and access spending, and TV distribution," said John Middelweerd, European leader of PwC's M&E practice.
"Recorded music, one of the slowest-growing segments over the past few years, will experience an enormous turnaround to become one of the fastest-growing segments in EMEA during the next five years, as spending on mobile music and legal digital distribution services take off."
Global advertising spending will increase at a robust 5.9 percent compound annual growth rate during the 2005-2009 period, rising to $477 (zł.1,591) billion in 2009 from $358 (zł.1,194) billion in 2004 and television advertising is projected to expand at a 6.4 percent compound annual growth rate during this period, boosted by new channels and a growing multi-channel household universe. Internet advertising is the fastest-growing advertising medium with a projected 15.8 percent compound annual increase to $32 (zł.107) billion globally in 2009.
The report also includes in-depth global analysis and five-year market forecasts for eight industry segments, including: radio and out-of-home advertising, business information, magazine publishing, newspaper publishing, book publishing, theme parks and amusement parks, casino gaming and sports.
Among the key drivers triggering end-user spending, the report enumerates improved economic conditions and an advertising upswing, combined with expanding online distribution of music, films, books and video games. The new spending will further be spurred by the popularization of broadband internet and wireless technologies.
"The entertainment and media industry continues to display an extraordinary ability to reinvent itself and create new revenue streams through innovative offerings that barely existed as recently as 2000," said Wayne Jackson, global leader of PwC's entertainment media practice. "Online and wireless video games, online film rental subscriptions, licensed digital distribution of music, and the rapid adoption of ring tones and mobile music downloads are becoming critical components of the industry and driving significant revenues across all regions," Jackson added.
The US remains the largest M&E market but not the fastest-growing one. It has been outpaced by Asia/Pacific where China is on track to overtake Japan as the region's entertainment giant by 2008. Spending growth in China will be the highest in the world, at a 14.2 percent compound annual growth rate excluding internet access spending, and 25.2 percent if internet spending is accounted for.
"We're forecasting healthy growth in [the Europe-Middle East Area] EMEA with double-digit increases in video games, including console games, handheld games, PC games, online games, and wireless games, as well as internet advertising and access spending, and TV distribution," said John Middelweerd, European leader of PwC's M&E practice.
"Recorded music, one of the slowest-growing segments over the past few years, will experience an enormous turnaround to become one of the fastest-growing segments in EMEA during the next five years, as spending on mobile music and legal digital distribution services take off."
Global advertising spending will increase at a robust 5.9 percent compound annual growth rate during the 2005-2009 period, rising to $477 (zł.1,591) billion in 2009 from $358 (zł.1,194) billion in 2004 and television advertising is projected to expand at a 6.4 percent compound annual growth rate during this period, boosted by new channels and a growing multi-channel household universe. Internet advertising is the fastest-growing advertising medium with a projected 15.8 percent compound annual increase to $32 (zł.107) billion globally in 2009.
The report also includes in-depth global analysis and five-year market forecasts for eight industry segments, including: radio and out-of-home advertising, business information, magazine publishing, newspaper publishing, book publishing, theme parks and amusement parks, casino gaming and sports.
