Global Entertainment and Media Industry to Hit $1.8 Trillion in 2010

NEW YORK, June 21: A PricewaterhouseCoopers report released
today predicts that the global media and entertainment industry will rise at a
6.6 percent compound annual growth rate (CAGR) to $1.8 trillion in 2010.

PricewaterhouseCoopers' Global Entertainment and Media
Outlook: 2006-2010 notes that much of this
growth is being driven by broadband and mobile. Global spending via online and
wireless channels reached $19 billion in 2005, and will increase to $67 billion
by 2010. Revenues will be drawn from online rental subscriptions and digital
streaming in filmed entertainment, licensed digital downloads and mobile music
in recorded music, online and wireless video games, electronic books and online
casino gaming.

"Virtually every segment of the entertainment and media
industry is shifting from physical distribution to digital distribution of
content," said Wayne Jackson, the global leader of PricewaterhouseCoopers'
Entertainment & Media Practice. "As this shift continues, we see more
revenue opportunities for entertainment and media companies. So, while physical distribution of
content is declining, that decline will be offset somewhat by digital
distribution, which is driving and creating new growth opportunities."

In 2005, the broadband universe totaled 187 million
households, up from only 30 million in 2001. By 2010, there will be an
additional 246 million broadband households, bringing the total to 433 million
globally. Wireless telephone subscriptions will rise from 1.8 billion last year
to 2.8 billion by 2010.

Global advertising will increase at a 6.2 percent CAGR
during the forecast period, from $521 billion in 2010 from $385 billion in
2005. The Internet will remain the fastest-growing advertising medium, at an
18.1 percent CAGR to $52 billion in 2010. The Internet will constitute nearly
10 percent of global advertising in 2010, compared with less than 3 percent in
2002.

Asia Pacific will remain the fastest growing region, led by China
and India. Spending in Asia Pacific will average 9.2 percent CAGR, reaching
$425 billion in 2010. Latin America's E&M market, the fastest growing
region in 2005, is projected to rise at an 8.5 percent CAGR to $60 billion in
2010. Canada is projected to expand at a 5.9 percent CAGR to $41 billion in
2010. The U.S. is still the largest market, but it is also the slowest growing,
with a CAGR of 5.6 percent to $726 billion in 2010. EMEA, the second largest
market, will expand at a 6.1 percent CAGR to reach $580 billion in 2010. Led by
Russia, Central and Eastern Europe will again be the fastest-growing area in
EMEA, rising by a 12 percent CAGR with double-digit growth expected in Internet
and access spending, radio and out-of-home advertising, TV distribution, TV
networks and video games.

Other key findings forecast that television distribution,
led by VOD and IPTV, will reach $230.3 billion in 2010, an 8.3 percent CAGR.
For broadcast and cable television networks, spending will increase at 6.6
percent CAGR to reach $227 billion in 2010. Filmed entertainment is expected to
rise by 5.3 percent each year to $104 billion in 2010.