PWC Predicts A Shift In Global Balance Of Media Power
According to the Global Entertainment and Media Outlook: 2008-2012 by Pricewaterhouse Coopers, get ready for a shift in the global balance of media power over the next 5 years.
Europe, the Middle East and Africa will overtake the US as the world’s largest entertainment and media market by 2009, while China, is expected to pass the US this year to become the world’s largest broadband market, with more than 80m households on super-fast connections.
The annual PwC survey, one of the most comprehensive reviews of the media landscape, looks at 15 global media markets from online, TV and newspaper advertising to theme park and cinema ticket sales. Last year, PwC estimates those markets were worth $1.6tr (£820bn) and by 2012 it expects them to be worth $2.2tr.
Some findings:
- Europe, the Middle East and Africa will see its media market grow 6.8% a year from $570bn in 2007 to $792bn, while the US will grow by 4.8% a year from $601bn to $759bn. Asia-Pacific will increase 8.8% a year from $333bn to $508bn, with Latin America expanding from $51bn to $85bn.
- The impact of music piracy means physical music sales, such as CDs, are expected to halve globally by 2012 to $13bn. By then digital music sales will have compensated for the rapid decline in physical sales, so while the overall music market is expected to fall from $33.4bn last year to $31.6bn in 2010, it will grow again from 2011.
- PwC estimates broadband will be worth $341bn globally by 2012, or 12.1% growth. The number of broadband households is expected to double from 310m last year to 661.1m, with the Arab world experiencing the strongest growth, and by 2012 rivaling France.
- The mobile internet market will expand at 18.9% by 2012 to $117.5bn, while spending on “wired” internet access will increase by 9.3% to $223.5bn.
- Online advertising is expected to rise from $49.5bn last year to $120.4bn in 2012. But growth is slowing down: it grew 33.2% in 2007 but over the next five years PwC predicts 19.5% annual growth. The fastest portion of online advertising will be advertising on mobile phones, which is expected to rise 44% to $16.4bn.
- TV advertising will rise from $162bn to $215bn by 2012.
And lots more predictions. download the report here.
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