India, China to drive entertainment business
By siliconindia   |   Monday, 25 June 2007, 19:30 IST
Printer Print Email Email
London: India will emerge as the fastest growing market in the world for spends in entertainment and media (E&M) for the next five years, and along with China, will be the key driver to push the global entertainment and media industry to $2 trillion by 2011, according to a study by PricewaterhouseCoopers (PwC). During the next five years, E&M spending in Brazil, Russia, India and China will continue to grow at double-digit annual rates, and will also account for 24 percent of E&M growth globally. Economic expansion and a surging entertainment and media market are driving significant growth in Brazil, Russia, India and China (BRIC), finds PwC’s eighth annual global media and entertainment outlook and forecast released in New York recently. Spending in the BRIC countries will increase by a 14.7 percent, expanding from $127 billion in 2006 to $251.5 billion in 2011. Though the U.S. still remains the largest market, it’s also one of the slowest growing. Worldwide, the industry is growing at an average rate of 6.4 percent, and is expected to touch $2 trillion in 2011. India’s compound annual growth rate of 18.5 percent is the highest estimated in the fastest growing Asia-Pacific segment while China is expected to maintain its average 16.8 percent growth. In Asia-Pacific, the fastest growing region in the world, spending on internet, TV distribution, casino and other regulated gaming averages 9.6 percent annual growth, and is poised to jump from the current levels of $297 billion in 2006 to $470 billion in 2011. PwC’s report finds that over the next five years, nearly half of the total industry growth is expecting to be generated through online and wireless technologies, even in India and Asia-Pacific. Global advertising will increase at 5.4 percent during the forecast period, rising to $531 billion in 2011 from $407 billion in 2006. Internet will remain the fastest growing advertising medium, with a projected 18.3 percent growth to $73 billion in 2011. The global Internet market rose 21.8 percent, the fastest-growing segment in 2006 and the fourth consecutive increase in excess of 20 percent. Within the next five years, broadband households will grow by 300 million to 540 million subscribers and wireless subscribers will increase by 1.1 billion to 3.4 billion. Digital and mobile spending is also expecting a double-digit growth in each territory during the next five years, rising to $153 billion by 2011. .

siliconindia