Thanks to advances in digital entertainment and advertising, U.S. entertainment and media spending in 2010 was up 3 percent to US$433 billion, which makes it the first increase in the past three years, according to the latest report by PricewaterhouseCoopers, “Global Entertainment and Media Outlook: 2011-2015,” USA Today reported.
Global entertainment and media (E&M) spending is expected to increase from $1.4 trillion in 2010 to $1.9 trillion by 2015, with a compound annual growth rate (CAGR) of 5.7 percent, the report states.
In the United States alone, the E&M market is expected to rise from $443 billion in 2010 to $555 billion in 2015, with a CAGR of 4.6 percent.
The growth is due to “an insatiable demand for content coming out of the consumers, combined with the ever-accelerating pace of the digital revolution. It’s truly creating new opportunities and new business models for the entertainment and media industry,” said PwC partner Stefanie Kane.
Overall U.S. advertising is expected to grow at a 4.2 percent CAGR from $170 billion in 2010 to $208 billion in 2015, paidContent reported.
Internet advertising worldwide is expected to increase with an average 12.2-percent CAGR, while video games and cinema advertising with an 8 percent and 6.7 percent CAGR, respectively.
Global television advertising, the largest segment, is expected to increase at 4.9 percent CAGR. The only two categories in decline are directories and newspaper advertising, with a CAGR of -1.8 percent and -0.2 percent, respectively.