Global Entertainment & Media Industry to Hit $2.2 Trillion in 2012

LONDON, June 19: According
to PricewaterhouseCooopers (PwC), the global entertainment and media market
will be worth some $2.2 trillion in 2012, with a compound annual growth rate
(CAGR) of 6.6 percent over the next five years.

A key trend going forward,
the study notes, will be strategic alliances, which will replace vertical
integration as entertainment and media companies explore ways in which they can
tap into technologies like broadband and mobile. “We’re seeing a new business
model solidify for entertainment and media companies,” said Marcel Fenez, the
managing partner of the Global Entertainment & Media practice at PwC.
“Some, such as the film industry, have dabbled in this in the past, but those
will be small movements compared to what lies ahead. No single company will be
able to successfully go it alone over the next five years. The challenges are
too significant and the demand for innovation too complete.”



Traditional media will
continue to dominate the sector in terms of revenues, PwC says, with the
exception of the music business. Digital and mobile distribution comprised 5
percent of global E&M spending in 2007. This is expected to rise to 11
percent—$234 million—by 2012.

Asia Pacific and Latin
America will continue to be the fastest growing regions worldwide. Double-digit
increases are expected in each region for Internet advertising, Internet access
spending, TV subscription and license fees and gaming and video games.

Latin America will total
$85 billion in 2012, up from $51 billion in 2007. Asia Pacific will total $508
billion, up from $333 billion last year. EMEA, the second-largest market, will
expand at a 6.8-percent CAGR to reach $792 billion in 2012, led by Central and
Eastern Europe and the Middle East/Africa. The U.S. is the largest but
slowest-growing E&M market.

—By Mansha Daswani