LONDON — The global entertainment and media industry will grow by 6.4% a year to reach $2 trillion by 2011, powered by the expansion of online and wireless technologies, according to a report by PricewaterhouseCoopers.
Spending on convergent platforms — defined as the coming together of the home computer, TV and wireless handsets — will account for almost 72% of the total growth in entertainment and media during the next five years.
“Content, distribution and technology companies need to aggressively seek out new relationships to accommodate the shift toward convergence,” said Jim O’Shaugnessy, global chairman of PwC’s entertainment and media practice. “Companies will need to test new business models to address increased fragmentation and intellectual property in a digital era.”
PwC’s Global Entertainment and Media Outlook 2007-11 predicts that Brazil, Russia, India and China will account for 24% of global growth in that period.
The U.S. will remain the single largest market for entertainment and media, but is growing at the slowest rate — just 5.3% a year to reach $754 billion in 2011.
Europe, the Mideast and Africa, the second-largest market, will grow only slightly more quickly, at 5.5% a year to reach $617 billion. The fastest-growing region will be Asia Pacific, ramping up at 9.6% a year to reach $470 billion by 2011.
Filmed entertainment is predicted to rise globally by 4.9% a year to $103 billion. TV network revenue will grow by 5.8% a year to $228 billion, but TV distribution will power ahead by 9.3% a year to $251 billion.
Even that growth rate will be dwarfed by spending on Internet advertising and access, which will grow by 13.4% a year to $332 billion by 2011.