Video games to lead Entertainment and Media industry growth
This compares with the filmed entertainment business, which PricewaterhouseCoopers estimates will grow at a 5.3 per cent compound annual rate, to become a $104 billion market by 2010, or the television networks business expected to grow at a 6.6 per cent rate to $227 billion.
The next generation of consoles and handheld games will spur the video games market in the US, Europe, the Middle East and Africa (EMEA), Asia Pacific and Canada, while PC games will continue to decline in the US and EMEA says the report. The introduction of new wireless phones capable of downloading games will further boost the wireless games market.
PricewaterhouseCoopers’ report ‘Global Entertainment and Media Outlook: 2006-2010’, predicts the overall E&M industry to grow at a 6.6 per cent compound annual growth rate to £1.8 trillion in 2010. The continued rollout of broadband will be a major driver as will wireless subscriber growth and high-speed wireless networks says the report.
Global spending via online and wireless channels reached $19 billion in 2005 and will increase to $67 billion by 2010, the report says.
“Virtually every segment of the entertainment and media industry is shifting from physical distribution to digital distribution of content," said Wayne Jackson, global leader of PricewaterhouseCoopers' Entertainment & Media Practice. “As this shift continues, we see more revenue opportunities for entertainment and media companies. So while physical distribution of content is declining, that decline will be offset somewhat by digital distribution, which is driving and creating new growth opportunities.”