By 2016, Global spend on Entertainment & Media services to reach $2.1 trillion

According to a recent report by PwC, the global spend on entertainment and media services will grow to $2.1 trillion by 2016 as against $1.6 trillion in 2011. This growth will be primarily driven by digital services with digital spend accounting for 67% of the total growth in revenue.

  • Some very important facts brought out by this report were:
  • By 2016, the total Digital circulation spend on online content and mobile downloads for trade magazines will rise to $9.2 billion.
  • In the next five years, there’ll be a sharp decline in the print directory advertising. It will be overtaken by  digital directory advertising which will rise to $14.1 billion.
  • The spend on print books will decline by 11 percent while the global spend on e-books will rise at a CAGR of 30.3 percent to $20.8 billion in 2016. The e book market in North America will rise to $12.9 billion in 2016 with consumer electronic books growing at a 32.2 percent, and educational electronic books at a 20.5 percent.The ebook market in India is expected to grow at a CAGR of 5.1 percent to $3.3 billion in 2016.
  • The print advertising sector has seen a decline since 2011. However, consumer magazine spend is expected to grow again in 2012 at a CAGR of 1.3 percent  $80.2 billion in 2016.
  • In the next five years, the global spend on filmed entertainment will rise at a CAGR of 3.1 percent to $99.7 billion. Over-the-top and streamed video services will be worth $11 billion in 2016, overtaking spend for TV subscriptions in 2012. In China, box office spend will increase at a CAGR of more than 20 percent through 2016.
  • By 2016, the total global spend on wired and mobile internet access is expected to grow at a CAGR of 9.3 percent to $493.4 billion. The global mobile subscriber base is expected to reach 2.9 billion by 2016 out of which China alone will account for almost 1 billion. In the next five years,the mobile subscriber base in India is expected to grow at a CAGR of 50.8 percent while the mobile internet spend is expected to grow at a 42.4 percent CAGR.
  • The global spend on Internet advertising—both wired and mobile—will rise to $188.1 billion in 2016 at a 15.9 percent compound annual growth rate. In China, this market is expected to grow at a CAGR of 32.1 percent and reach $31 billion in 2016.  By 2016, the global mobile internet advertising revenues of $24.5 billion will grow at 36.5 percent compounded annually.However, paid search at $78.1 billion and banner/display at $46.6 billion will retain the lion’s share of the market in 2016.
  • By 2013, the overall spend on music will increase. PwC says that digital accounted for one-third of all recorded music spend in 2011, and it will overtake global spend on physical music (CDs mainly) in 2015.
  • Though the spend on newspapers will see a decline in areas such as North America, it will have a strong growth in countries such as Argentina (11.9 percent CAGR), Indonesia (11.2 percent) and India (9.6 percent).
  • The global out-of-home advertising market will grow by 5.0 percent on a compound annual basis to $40.8 billion in 2016. Indonesia, Russia, and India will be the fastest-growing countries for out-of-home spending through 2016, with compound annual growth rates of 11.2 percent, 11.0 percent, and 10.9 percent, respectively.
  • By 2016, the global radio market will increase at a CAGR of 3.5 percent to $56.2 billion. Satellite radio subscriptions will be the fastest-growing component of the radio market, averaging 9.5 percent compounded annually to $4.5 billion in 2016. With many new FM stations, the radio market in India will grow at a CAGR of 17.3 percent making it the world’s fastest-growing radio market through 2016.
  • The global television advertising market will grow at a CAGR of 6.6 percent to $254.7 billion in 2016. Growing at a CAGR of 9.8 percent to $27.3 billion, Latin America will be the fastest-growing region in 2016.
  • The global television subscription and license fee market will grow at a CAGR of 6.2 percent to $290.6 billion in 2016. The spend on Mobile TV subscription will grow at 13.3 percent and public TV license fees will grow at a more modest 1.3 percent annually.
  • The global spend on video games is expected to grow at a CAGR of 7.2 percent to $83.0 billion in 2016. The spend on online and wireless games will overtake console and PC games in 2013, and will be 36 percent larger by 2016.

You Might Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>