These articles are dedicated to providing topical insights into some of the key issues facing the entertainment & media industry.
Global overview [PDF file, 31kb] The entertainment and media industry is well into a recovery pattern and should post stronger growth in the second half of the decade than it did during the first half, according to the PricewaterhouseCoopers (PwC) Global entertainment and media outlook: 2006-2010. Key themes include:
Digital and mobile distribution will become a significant component of the entertainment and media market, fueled by rising broadband and wireless subscribership.
Economic growth will support spending in the near term, but higher gasoline prices are increasing the cost of purchasing products away from home, and maturation in the recovery will lead to slower entertainment and media growth during 2009-10.
Physical formats will continue to dominate, but growth will be slow as consumers migrate to digital and mobile distribution.
Business information [PDF file, 22kb] An improved global economy will help the worldwide business information market—which historically tends to follow overall economic and investment cycles—to grow to $101.2 billion in 2010 at a 5.3 percent compound annual growth rate, according to our Global entertainment and media outlook: 2006–2010.
Casino and other related gaming [PDF file, 16kb] Whether it is bricks-and-mortar or online gambling venues, our Global entertainment and media outlook: 2006-2010 says that the global revenue for Casino and other regulated gaming will increase at a compound annual growth rate of 8.8 percent from $82.2 billion in 2005 to $125 billion in 2010. The popularity of online poker, coupled with the penetration of high-speed broadband Internet access, give gaming a new ease and excitement. Although online gaming is illegal in the US, sites around the world attract players from everywhere. On the ground, new casinos in the US, Asia Pacific, EMEA, Canada, and Latin America are also drawing visitors.
Filmed entertainment [PDF file, 19kb] PricewaterhouseCoopers’ Outlook forecasts positive growth for the filmed entertainment global market to begin in 2006. Overall, revenues will increase at a 5.3 percent compound annual growth rate, reaching $104.1 billion in 2010. The drivers of growth vary by region, but one commonality is the introduction of technological improvements and innovations, including digital cinema, modernized theaters, high-def DVDs, TV shows on DVD, and Internet streaming.
International markets and digital distribution key to film industry's future [PDF file, 22kb] After experiencing a difficult year of declining box office revenues and nearly flat DVD sales in 2005, the international filmed entertainment market is bouncing back in 2006. Box office revenues in the US and other large western European markets have increased five-plus percent through the first half of 2006, and this summer’s major releases are generally performing well. This box office success is good news for the DVD sell-through market through the latter part of the year, which will also be boosted by the introduction of high-definition DVD formats.
Internet advertising & access spending [PDF file, 19kb] An increasingly competitive market and substantial investment in infrastructure will fuel expansion of broadband, boosting worldwide Internet advertising and access revenues to $265.6 billion in 2010 at a 12.9 percent compound annual growth rate.
Magazine publishing [PDF file, 18kb] Marked growth in advertising revenues will drive worldwide spending on magazine publishing, expanding to $117.6 billion in 2010 at a 3.6 percent compound annual growth rate.
Newspaper publishing [PDF file, 18kb] Substantial expansion of category advertising will fuel worldwide spending on newspaper publishing, rising to $208.1 billion in 2010, according to PwC's Global entertainment and media outlook: 2006-2010.
Radio and out-of-home advertising [PDF file, 23kb] According to our Global entertainment and media outlook: 2006–2010, continued growth in digital and satellite radio will be the principal drivers behind the radio and out-of-home advertising market's growth to $86.8 billion in 2010 at a 6.2 percent compound annual growth rate.
Recorded music [PDF file, 17kb] Distribution of mobile and licensed digital music will drive recovery of worldwide spending on recorded music, gradually replacing the physical market, with total revenues reaching $47.9 billion in 2010 at a 5.2 percent compound annual growth rate, according to our Global entertainment and media outlook: 2006–2010.
Television distribution [PDF file, 18kb] Successful migration of subscribers to digital tiers and increasing average revenue per user from enhanced services will fuel worldwide spending on TV distribution, with revenues reaching $230.3 billion in 2010 at a compound annual growth rate of 8.3 percent.
Television networks: Broadcast & cable [PDF file, 18kb] The market is heating up for TV networks around the world, projects PwC's entertainment and media outlook: 2006-2010. Global revenues are rising at a compound annual growth rate of 6.6 percent from $164.2 billion in 2005 to $226.6 billion in 2010. Fueling this global growth is multichannel advertising, propelled by the expansion of digital households and advertising on the new channels supported by digital platforms.
Theme parks and amusement parks [PDF file, 20kb] PricewaterhouseCoopers' Global entertainment and media outlook: 2006-2010 projects that for theme parks and amusement parks, spending worldwide will grow at a 4.5 percent compound annual rate during the 2006–2010 period from $22.1 billion in 2005 to $27.6 billion in 2010. Globally improved economic conditions that foster tourism support the overall growth of the industry during the next five years, and regionally-specific factors affect the growth rate within geographies. Novelty and innovation are key, flowing from both new venues and new rides and environments in existing parks.
Video games [PDF file, 19kb] Introduction of new handsets and next-generation consoles will fuel worldwide spending on video games, rising to $46.5 billion in 2010 at a compound annual growth rate of 11.4 percent.
