GLOBAL entertainment and media (E&M) industry spending is expected to increase at a 6.3% compound annual growth rate (CAGR) to US$1.7 trillion in 2008, according to PricewaterhouseCoopers (PwC).
It said the industrys positive momentum would be sparked by an impressive 9.8% CAGR for the Asia-Pacific regional E&M market, and globally by improved economic conditions, the availability of new distribution channels and continued adoption of next-generation technologies.
PwC said that after three years of sluggish growth, the E&M industry had begun a solid upturn, with spending rising 4.2% in 2003 to US$1.2 trillion, and growth prospects looking brighter now than they had since the late 1990s.
Growth will pick up to 5.7% globally in 2004 and sustain faster increases through 2008, said PwC in the latest edition of Global entertainment and media outlook: 2004-2008 report.
It said the Asia-Pacific was emerging as a key driver of E&M industry growth fuelled largely by China and India, both of which were investing heavily in communications and media infrastructure and opening up their markets.
The Asia-Pacific regions video games and Internet segments, it said, would be the worlds largest and fastest growing, and television distribution would benefit from the addition of 96 million multi-channel households in India and China.
Although piracy remains a negative force, efforts to stem its effects combined with domestic and foreign industry investments will drive growth in the region, said the Asia- Pacific leader of PwCs E&M practice, Marcel Fenez.
The E&M industry was experiencing a major shift in the way entertainment was distributed, with new distribution channels such as broadband Internet access and wireless communications driving significant growth in the industry, PwC said.
On another note, PwC said global advertising spending would increase at a solid 5.3% CAGR during the 2004-2008 period, rising to US$412bil in 2008 from US$318bil in 2003.
TV advertising was projected to rise at 6.5% CAGR during the period, boosted by new channels as well as advertising associated with the 2004 and 2008 Olympic Games and the 2006 Fifa World Cup.
PwC said TV would remain the largest advertising medium, with spending rising to US$164bil in 2008.
As for Internet advertising spending, PwC said it had rebounded strongly in 2003 with a 22.9% increase after a weak 2001 and 2002.
Despite being the smallest of the six advertising media tracked by PwC, the Internet would remain the fastest growing advertising medium, with spending rising to a projected US$18.9bil with a 12.7% CAGR. - Bernama
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