NEW YORK, June 15, 2010 – With economic conditions remaining uncertain and advertising showing a modest return to stability, consumer behavior is expected to be the catalyst of entertainment and media (E&M) industry change over the next five years, according to PricewaterhouseCoopers’ Global Entertainment and Media Outlook: 2010-2014 (Outlook), released today. The report affirms that digital technology is expected to progressively increase its impact across every E&M segment as digital transformation continues to expand and escalate. Following a year of decline in 2009, the Outlook forecasts that global entertainment and media spending is expected to rise from $1.3 trillion to $1.7 trillion by 2014, growing at a compound annual growth rate (CAGR) of 5.0%. The US E&M market is expected to grow at 3.8% CAGR reaching $517 billion in 2014, from $428 billion in 2009.
“The digital pace of change has proven to be even quicker than anticipated with consumers embracing new media experiences and digital downloads at often-unexpected speeds,” said Ken Sharkey, US leader, entertainment, media & communications practice, PricewaterhouseCoopers. “There is no ‘one-size-fits-all’ approach for E&M companies to stake their position in the digital value chain. The continued fragmentation of the E&M sector will fuel greater experimentation by both established industry giants and niche players in adopting business models that include hybrid combinations of advertising and subscription approaches.”
While digital services continue to be the primary growth engine, traditional revenue streams are expected to remain significantly larger throughout the forecast period. The industry will need to embrace digital not as a competitor to traditional services, but as a complement. Digital spending in the US is expected to account for 26% of all E&M spending in 2014, up from 19% in 2009.
PricewaterhouseCoopers’ Global Entertainment & Media Outlook 2010-2014, the 11th annual edition, contains in-depth analyses and forecasts of 13 major industry segments across four global regions: North America (USA, Canada), EMEA (Europe, Middle East, Africa), Asia Pacific and Latin America. To order copies, go to: http://www.pwc.com/outlook.
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