New York to Surpass Tokyo as Top-Spending Entertainment & Media City

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NEW YORK: Bolstered by a strong overall economy, New York is projected to be the top entertainment & media (E&M) spender as it overtakes Tokyo by 2018, according to a new PwC Cities of Opportunity: The Urban Rhythm of Entertainment & Media report.

E&M spending in the top ten spending cities is estimated at $109 billion in 2014, expected to rise to $126 billion by 2018. Tokyo's 0.7 compound annual growth rate (CAGR) falls short of New York's 4.5 percent. London is in third place. In terms of absolute growth, New York, London, Hong Kong, Moscow and Los Angeles combined will account for almost $2 in every $5 of the growth in E&M spending over the next five years.

While emerging cities represent the greatest growth potential, developed cities still dominate total spending. Hong Kong is the only city featured in the report to come close to falling in both categories of high spending and high growth. All of the ten fastest growing cities are represented by emerging economies. Nairobi, a young city with an average population age of 25, leads the pack with a 12.5 percent CAGR from 2013 to 2018.

Cities of Opportunity forecasts that E&M employment will grow 16 percent by 2025. By 2025, PwC projects the 5.85 million E&M jobs in the 30 cities in 2013 will have grown to 6.8 million. The E&M sector accounts for 6 percent of jobs on average across the 30 cities, and more than 10 percent in some cases such as London (12 percent), Berlin (10 percent), Tokyo, Stockholm, Madrid and Istanbul (all at 9 percent).

"Entertainment and media plays a crucial role in the economy of the urban future with high productivity and strong share of jobs in many cities like New York, London and Berlin," said Deborah Bothun, PwC's U.S. entertainment, media and communications leader. "Knowledge of a city's strengths and challenges will be vital for E&M companies in deciding the best cities to do business and how to attract talent in the local market. At the same time, companies will need to ensure that they understand the issues around tax policy and intellectual property protection."