The filmed entertainment market consists of consumer spending at the box office for theatrical motion pictures plus spending on renting from video stores and other retail outlets (the in-store rental market) and purchasing home video products in retail outlets or through Web sites (the sell-through market). It also includes online film rental subscription services—such as those that send DVDs via overnight mail—and streaming services from which films or TV shows are downloaded via a broadband Internet connection. The figures do not include music videos (which are counted in the recorded music chapter), or video-on-demand, or pay-per-view, or movie distribution by cable, satellite, or telephone companies (which are covered in the TV distribution chapter).
A sampling of global facts and forecasts:
"US digital cinemas and the introduction of 3D screens will reinvigorate the box office market."
"In EMEA, online subscription rentals will propel overall rental activity while cannibalising in-store spending."
"Asia Pacific will be the fastest growing region, rising from US$16.7 billion in 2006 to US$23.1 billion in 2011, growing at a 4.6 percent CAGR."
"In Latin America, rising affluence and low-cost videos will help counter ongoing piracy and boost home video growth."
In Canada, Video store openings and online subscriptions will fuel rental spending, while high-definition DVDs will enhance sell-through."
Television networks: Broadcast and cable
The television network market consists of advertiser spending on broadcast and cable networks, plus other sources of revenue that vary by region. In North America, the television network market includes license fees paid by TV distributors to basic and premium cable networks. In EMEA (Europe, Middle East, Africa) and Asia Pacific, it includes public TV license fees. Net advertising figures—consisting of spending less agency commissions and discounts—are tracked in EMEA, Asia Pacific, Latin America, and Canada. Advertising in the US and Russia is reported with agency commissions included, as is customary. The television distribution market, which consists primarily of subscription revenues paid to program distributors, is covered in a separate chapter.
Multichannel advertising refers to advertising on networks that are accessed by viewers via cable (analogue or digital), satellite, digital terrestrial television (DTT), or other means but that are not otherwise available without these services. Terrestrial advertising consists of advertising generated by free-to-air broadcast networks that can be received through an ordinary television receiver, even if viewers can also receive such networks through a cable, satellite, or DTT service.
A sampling of global facts and forecasts:
"The US will remain the largest market, expanding from US$62.2 billion in 2006 to US$85.4 billion in 2011; at a 6.5 percent CAGR."
"In EMEA, high-definition television and digital video recorder rollouts will make television more appealing to viewers and advertisers, while a modified regulatory structure will contribute to overall advertising growth."
"In Asia Pacific, new distribution platforms will enhance a small multi-channel market while improving terrestrial advertising growth."
"Latin America will be the fastest growing market, rising to US$12.1 billion in 2011 from US$7.9 billion in 2006, an 8.8 percent CAGR."
"In Canada, high-definition television will help sustain broadcast viewing and advertising, but losses related to distant signal retransmission will continue to cut into growth."
The recorded music market consists of consumer spending on physical formats—albums, single sound recordings, and music videos—as well as digital distribution. Digital distribution consists of music distributed to mobile phones through wireless carriers and of music downloaded from the Internet through licensed services. Mobile phone music formats include ring tones, which are monophonic or polyphonic tones that play aloud when the phone rings; ring backs, which are ring tones or actual songs the caller hears when a call is placed; and ring tunes, also known as master ring tones and true tones, which are either portions of or an entire actual music track with full vocals and orchestrations. The recorded music market does not include satellite radio, which is included in the radio and out-of-home advertising chapter.
A sampling of global facts and forecasts:
"In the US, new mobile music services and the surging popularity of ring backs will fuel digital distribution to mobile phones."
"In EMEA, ongoing piracy and migration to digital distribution will lead to further declines in physical distribution."
"Asia Pacific will be the fastest growing region, advancing at a 5.4 percent CAGR to US$12.2 billion in 2011 from US$9.3 billion in 2006. Asia Pacific will pass the United States in 2008 to become the second largest region."
"In Latin America, growth in the wireless universe will drive spending on mobile phone distribution, which will become the dominant format in 2009."
"In Canada, the physical market will decline as spending shifts to digital and mobile channels."
Radio and out-of-home advertising
The radio and out-of-home advertising market consists of advertiser spending on radio stations and radio networks, plus out-of-home media such as billboards, street furniture (bus shelters, kiosks, and so on), transit displays (bus sides, on-train print, taxi toppers, and so forth), sports arena displays, captive ad networks (in such venues as elevators) and other formats, and satellite-delivered radio subscriptions in the United States, Asia Pacific, and Canada. Satellite radio in the United States also includes advertising. In EMEA (Europe, Middle East, Africa) and Asia Pacific, the market includes public radio license fees. Advertising spending is tracked, net of agency commissions in EMEA (except Russia), Asia Pacific, Latin America, and Canada. Advertising in the US and Russia is customarily reported as gross spending, so gross figures are tracked in those countries.
A sampling of global facts and forecasts:
"Growing exposure in automobiles and the appeal of multiple formats will drive satellite radio subscriptions and fuel advertising on satellite platforms in the US."
"EMEA is expected to rise from US$24.9 billion in 2006 to US$30.1 billion in 2011, a 3.8 percent CAGR."
"In Asia Pacific, new radio licences in India, rapid expansion in the People’s Republic of China (PRC), and digital radio launches will fuel radio advertising."
"In Latin America, rising exposure to out-of-home ads will continue to propel growth."
"In Canada, digital billboards, 3D displays, and in-store video networks will expand out-of-home inventory and propel spending."
Internet advertising and access spending
The internet advertising and access spending market consists of fees paid by consumers to internet service providers (ISPs) and spending by online advertisers on display, classified, paid-search, video, and other online formats.
A sampling of global facts and forecasts:
"Spending in the United States will total US$78.4 billion in 2011, up from US$47.2 billion in 2006, averaging 10.7 percent CAGR."
"In EMEA, rising broadband penetration will drive internet advertising."
"In Asia Pacific, government initiatives will boost broadband subscribership and eventually lead to a decline in dial-up."
"Latin America will increase from US$6.0 billion in 2006 to US$12.2 billion in 2011, a 15.1 percent CAGR."
In Canada, competition between cable operators and telephone companies will continue to fuel broadband."
Video games
The video game market reflects consumer spending on console games (including handheld games), personal computer games, online games (including all games delivered over the internet, including massive multiplayer online games [MMOGs]), downloadable games (whether to computers or to consoles), on-demand games streamed through a Web site, and wireless games played on mobile phones. Spending by consumers includes both (1) purchases via retail, made online, or made through mobile providers and (2) subscriptions. In the United States, spending also includes advertising on video games. The category excludes spending on the hardware and accessories used to play the games.
A sampling of global facts and forecasts:
"In the US, new wireless phones capable of downloading games will boost the wireless game market."
"In EMEA, penetration of newer handsets with Internet access capabilities will facilitate the growth of wireless gaming."
"Asia/Pacific, the largest market, at US$11.7 billion in 2006, is projected to maintain its leadership through 2011, reaching US$18.8 billion, growing by 10 percent CAGR."
"In Latin America, facing less competition from online games and next-generation consoles than in other regions, PC games will expand."
"In Canada, a full year of new consoles in the market will boost sales in 2007, with slower growth expected thereafter as the platforms mature."
Business information
The business information market is composed of financial, marketing, and industry information distributed primarily to business and/or professional audiences. The market encompasses the direct purchase of information by businesses and does not include information provided through advertiser-supported media such as business magazines and business TV channels or through ad-supported Web sites, nor does it include information available through professional books, newspapers, or other general-distribution media outlets serving the population as a whole. The data in this chapter also exclude information supplied free of charge—because such information does not produce a spending stream—as well as information purchased by consumers.
A sampling of global facts and forecasts:
"US business information spending will grow at a 6.1 percent CAGR to $62.4 billion in 2011 from $46.5 billion in 2006."
"In EMEA, marketing information will expand 5.0 percent CAGR to US$6.4 billion in 2011 from US$5.1 billion in 2006."
"In Asia Pacific, business information spending in Asia Pacific will increase at a 6.3 percent CAGR, the fastest of the five regions, from US$6.9 billion in 2006 to US$9.3 billion in 2011."
"In Latin America, marketing information will be the fastest-growing category, averaging 5.5 percent annually as rising incomes and increased consumer spending stimulate interest in marketing in the region. Spending will increase from $307 million in 2006 to $401 million in 2011."
"In Canada, industry information will reach US$2 billion in 2011 from US$1.5 billion in 2006, averaging 5.1 percent growth compounded annually."
Magazine publishing
The magazine publishing market consists of spending by advertisers in consumer and business-to-business or trade magazines, plus spending by readers to purchase magazines via subscriptions or at retail outlets.
A sampling of global facts and forecasts:
"In the US, readership migration to the Internet will lead to slower growth in consumer magazine print advertising."
"In EMEA, new launches will offset increased competition from the internet and lead to increase circulation spending."
"The Asia Pacific market will advance at a 3.6 percent CAGR, increasing from US$17.2 billion in 2006 to US$20.6 billion in 2011."
"Latin America spending will expand from US$3.1 billion in 2006 to US$4.2 billion in 2011, rising at a 6.1 percent CAGR."
"In Canada, popular local consumer titles and an expanding telecommunications sector will buoy consumer and trade magazine advertising."
Newspaper publishing
The newspaper publishing market consists primarily of spending on daily print newspapers by advertisers and readers. Spending by readers includes both newsstand purchases and subscriptions. Weekly papers are not included (except in Germany) because they constitute a separate and distinct market in terms of content, advertising base, and subscriber interests. Globally, online subscriptions are not included due to the current lack of robust data. In the United States, advertising generated through online editions and online classifieds is included in newspaper totals, but since these revenues are not yet widely tracked in other regions, they are not included elsewhere.
A sampling of global facts and forecasts:
"In the US, alliances with search engines to help sell inventory should have a positive impact on retail print advertising beginning in 2010."
"Gains in Central and Eastern Europe and Middle East/Africa will help counter ongoing shifts of resources to the internet in Western Europe, leading to advances in newspaper advertising for EMEA as a whole."
"Growth in Asia/Pacific will grow from US$45.2 billion in 2006 to US$53.5 billion in 2011, a 3.4 percent CAGR."
"In Latin America, the emergence of broadband will attract people to the Internet and lead to slower growth in unit circulation and in circulation spending compared with the past two years."
"In Canada, free newspapers and competition from the Internet will lead to continued declines in unit circulation and a decrease in circulation spending."
Book publishing
The book publishing market consists of retail spending by consumers on consumer books; spending by schools, government agencies, and students on elementary, high school, and college textbooks, including graduate textbooks; and retail spending on professional books. The market also includes spending on books in electronic formats, called electronic books, which are delivered electronically and generally purchased on a stand-alone basis. Print sales include audio books in each region except the United States, where they are broken out separately. Companion Web sites and other online information provided for educators generate other revenue streams that are included in electronic books only if they are included in the cost of the book or if the book is sold in a package that includes these ancillary services.
A sampling of global facts and forecasts:
"In the US, online browsing and new services will drive the audio and electronic book markets."
"In EMEA, expanding economies will sustain growth in educational books."
"In Asia Pacific, helped by the ongoing build-out of digital infrastructure, electronic books downloaded through the internet and to wireless phones will begin to represent a significant component of the book publishing market."
"In Latin America, increased government funding will boost educational books."
"Book publishing in Canada will expand from US$1.8 billion in 2006 to US$2.2 billion in 2011, growing at a 4.0 percent compound annual rate."
Theme parks and amusement parks
Theme parks and amusement parks are indoor or outdoor attractions that often feature rides as the primary draw. Spending consists of admission fees, food, souvenirs, and other related purchases made at the parks. Expenditures at zoos, aquariums, museums, state and local annual fairs, traveling carnival attractions, and water parks, as well as at on-site hotels, are not included. Some parks do not charge admission fees but charge separately for rides, which are included in per capita spending. In contrast to the other segments of the outlook, we have included spending on merchandise and food, as it tends to relate closely to attendance and to the amount of time people stay at a park. The market can be broadly divided into destination and regional parks. Destination parks are typically those where a majority of the visitors stay for more than two days in the area. Regional parks are typically those where a majority of the visitors come for the day or a weekend.
A sampling of global facts and forecasts:
"The United States will remain the largest market, increasing from US$11.5 billion in 2006 to US$14.0 billion in 2011, a 3.9 percent CAGR."
"In EMEA, ownership changes will encourage additional capital investments to improve park facilities and encourage higher attendance."
"The People’s Republic of China and India are emerging as major theme park locations."
"In Latin America, rising disposable income will lead to an increase in park admissions."
"In Canada, the lack of large new attractions and reduced US tourism will limit attendance growth at the major parks."
Casino and other regulated gaming
Casino and other regulated gaming consists of betting activities conducted within brick-and-mortar casinos—including land-based casinos, riverboats, dockside casinos, tribal casinos, slot parlours, racinos (slots at racetracks), and limited-stakes casinos—as well as online gaming at Internet casinos, virtual poker rooms, and other online sites in countries where it is legal. It also includes sports betting where it is legal. Spending totals represent gross gaming revenue, which is the house win, or the amount wagered minus the amount returned to players as winnings. In the case of virtual poker rooms, revenue consists of charges to the pot in each game. For legal sports books, revenue consists of the house cut deducted from the amount returned to winning bettors. Legal sports betting revenues and legal online gaming revenues represent only a fraction of the actual wagering that occurs.
A sampling of global facts and forecasts:
"US legislation that curtails online gaming will have international repercussions."
"In EMEA, new licences and increases in wagering from mobile phones will propel online and mobile gaming."
"Asia Pacific will expand by 15.7 percent CAGR, from US$14.6 billion in 2006 to US$30.3 billion in 2011, passing EMEA in 2011 to become the second largest region."
"In Latin America, new casinos and rising disposable income will drive casino gaming revenue."
"In Canada, a new sports betting venue will attract US visitors and boost sports betting revenues."
Sports
The sports market consists of gate revenues for live sporting events; rights fees paid by radio broadcasters, broadcast and cable television networks, and television stations to air those events; merchandising, which includes the selling of products—with player likenesses or with team logos—and other intellectual property; sponsorships, which include naming rights and payments to have a product associated with a team, league, or event; and Internet, mobile, satellite, and other rights packages associated with sports events. Food concession revenues are not included.
A sampling of global facts and forecasts:
"In the US, new satellite and online sports packages will boost sports rights fees."
"In EMEA, attendance declines and moderate pricing will dampen gate revenue growth."
"Asia Pacific will expand from US$13.7 billion in 2006 to US$17.7 billion in 2011, a 5.3 percent CAGR."
"In Latin America, sustained economic growth and the TV exposure of domestic and international teams will boost merchandising and sponsorship revenue."
"In Canada, the return of the NHL will expand the sponsorship and merchandising market."
