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The global entertainment and media industry is experiencing sustained growth and will increase at a 6.4 per cent compound annual growth rate to US$2 trillion in 2011, according to PricewaterhouseCoopers Global Entertainment and Media Outlook 2007-2011.

The report maintains the Internet, TV distribution and video games will be the fastest-growing global segments, and geographically, Brazil, Russia, India and China will be the principal growth drivers.

According to the study, the global Internet market was the fastest-growing segment in 2006 due, for the most part, to the migration of Internet subscribers from dial-up to broadband. Globally, the report says Internet advertising and access spending is expected to grow 13.4 per cent to $332 billion in 2011.

In terms of regions, Asia-Pacific will be the fastest-growing platform, with a projected 13.5 per cent increase as Internet and broadband penetration begins to gain momentum.

“Content, distribution and technology companies need to aggressively seek out new relationships to accommodate the shift towards convergence.  Furthermore, companies will need to test new business models to address increased fragmentation and intellectual property in a digital era,” said Jim O’Shaughnessy, global chairman, Entertainment & Media practice, PricewaterhouseCoopers. “Deal activity across the entertainment and media sector is accelerating, driven by the migration to digital formats.”

In every region, spending on convergent platforms will grow faster than other E&M platforms and will account for 72 per cent of the total E&M growth during the next five years.  Asia Pacific will be the fastest-growing convergent platform region with a projected 13.5 per cent increase and double-digit growth is expected in Latin America as Internet and broadband penetration begins to gain momentum.

Economic expansion and a surging entertainment and media market are driving significant growth in Brazil, Russia, India and China (BRIC).  Led by India and China, E&M spending in BRIC will continue to grow at double-digit annual rates during the next five years and will account for 24 per cent of global E&M growth during the next five years.  Spending for the BRIC countries will increase by a 14.7 per cent compounded annually, expanding from $127 billion in 2006, to $251.5 billion in 2011.  That gain will be nearly three times the projected 5.5 per cent compound annual increase for the rest of the world.



About Mark Lee

Mark Lee has been a long-time journalist writing, editing and producing in print, radio television and new media.