PwC: Internet Sector To Lead Global Media Growth

The Hollywood Reporter
Global entertainment and media is expected to grow by $500 billion over the next five years, thanks to online media, says PricewaterhouseCoopers, topping off at $1.83 trillion in 2010--up from an estimated $1.33 trillion in 2005. The financial services firm says media spending will grow at a compound annual growth rate of 6.6 percent; advertising growth is expected at 6.2 percent, again, increases will be largely driven by Internet ad spending, which the firm expects to grow at a compound annual rate of 12.9 percent. The other major growth driver for media overall will be video games, PwC said, estimating an 11.4 percent annual gain. Analysts said increased adoption of digital media delivery will help ramp up consumer spending. "Virtually every segment of the entertainment and media industry is shifting from physical distribution to digital distribution of content," said Wayne Jackson, global leader of PwC's entertainment and media practice. He added that the digital revolution will remain a key theme in the U.S. in particular, where video games and the Internet sector--including Internet advertising--will see the strongest five-year gains, 8.9 and 8.4 percent, respectively. Globally, advertising is set to grow from $383 billion last year to $521 billion in 2010; not surprisingly, PwC expects Internet advertising to see the largest increase--growing 18.1 percent per year to $51.6 billion worldwide, and $25.5 billion in the United States. - Read the whole story...