Entertainment and media companies hoping to drive growth over the next five years will need to accommodate dramatic changes in devices, market and consumer behaviour through striking business alliances, according to a report by PricewaterhouseCooper. The report pegs global compound annual growth rate at 6.6 percent for the sector, anticipating it to reach USD 2.2 trillion in 2012.

Broadband penetration continues to accelerate globally. Mobile is gaining ground quickly, adding subscribers and upgrading infrastructure to enable the next wave of mobile expansion, driven by internet access, advertising and television. Modern movie houses, digital cinemas and 3-D upgrades are enhancing the cinema-going experience, while high-definition television subscriptions and a resolution of the high definition DVD format wars will invigorate digital living rooms.

The impetus behind these new technologies is rarely established companies. The global broadband boom continues unabated, fuelling overall growth, and more than doubling to 661 million households in 2012, a 16.4 percent compound annual increase.

Over the next five years, Asia Pacific and Latin America will be the fastest growing regions. Double-digit increases are expected in each region for internet advertising, internet access spending, TV subscription and licence fees, casino and other regulated gaming and video games.

Latin America will total $85 billion in 2012, up from $51 billion in 2007, advancing from a relatively small base at 10.6 percent CAGR. Spending in Asia Pacific will average 8.8 percent CAGR, the second highest of any region, increasing from $333 billion in 2007 to $508 billion in 2012.

EMEA, the second largest market, will expand at a 6.8 percent CAGR to reach $792 billion in 2012. Central and Eastern Europe and Middle East/Africa will fuel growth in this territory. Internet advertising, internet access spending and video games will continue to average double-digit compound annual increases during the next five years.

The US currently remains the largest but slowest growing entertainment and media market, growing at a 4.8 percent compound annual growth rate reaching $759 billion in 2012. Internet advertising and internet access spending will be the only two segments with double-digit growth during the next five years, boosted by continued growth in broadband. (Source: Telecompaper).

Story filed 21.06.08