Global Survey: DVD Will Help Push Entertainment Over the $1 Trillion Mark in the Next Five Years4 Jun, 2001 By: Hive News
The global entertainment and media business will continue to grow at a healthy 7.2% annual pace through 2005, according to the Los Angeles Times citing a report to be released this week by PricewaterhouseCoopers.
The report cites the explosion in Latin American markets and developments in the delivery of entertainment via broadband Internet "channels" as the primary forces driving global entertainment gains over the next five years.
The survey also predicts that the industry worldwide will pass $1 trillion annuallyfor the first time ever, eventually climbing to $1.2 trillion by 2005.
The survey zeroes in on Latin America as a hot zone for Hollywood growth. With cable TV, satellite and wireless systems growing in the region, partly because of deregulation, and the number of movie theaters expanding, Latin markets are ripe for double-digit growth.
The Times also said the report is "bullish" on the Internet as a delivery system for entertainment -- music, books, newspapers, magazines and "eventually" movies. The report is optimistic that online copyright and issues will be resolved, and theentertainment industry will adopt Internet subscription-based services to generate revenue.
The report concludes that entertainment will grow about 7.1% annually in the U.S., to nearly $500 million.
Other predictions in the report, according to the Times:
* Filmed entertainment worldwide will continue togrow despite the retrenching by the U.S. exhibitionbusiness amid financial problems plaguing movie theater chains.
* Growth of 6.6% annually, to $93 billion in 2005 from $68 billion in 2000, with Latin America leading at a 10% rate.
* The U.S. market in filmedentertainment is expected to reach $55 billion by 2005,sparked by a growing market for DVDs as well as TV program spending.
* Television programming and distribution systems also will grow rapidly.
* TV programming over broadcast and cable systems will grow 9.4% annually to $168 billion in 2005, with growth in digital andsatellite TV playing a major role.
* Television distribution via stations, cable channels and satellite systems will grow 7.8% annually to $221 billion.
* Spending on music will be flat in the U.S. and Europe. But overall growth worldwide will be about 5.1%, to $49.3 billion, because of increased sales in Latin America, Eastern Europe and Asia and because of growth in online distribution.
* In theme parks, the U.S. will experience the slowest growth because the business is so highly developed here. Higher growth rates will occur in Latin America and Asia -- a 6.3% annual growth to $24.2 billion.
* Higher ticket prices and the growth of digital TV will boost sports worldwide, raising it 7.4% annually to$50.4 billion in 2005.
* Improved literacy rates in Latin America will boost the magazine, newspaper and book publishing businesses. Globally, newspaper growth is predicted to be 5% annually, to $197 billion, with magazines rising 5.8% to $111 billion and books growing 4.2% to $105 billion.
(Source: The Los Angeles Times)