Digital technologies propel entertainment sector

Industry will be worth $1.8 trillion by 2010, says PricewaterhouseCoopers

Digital, mobile and broadband channels will fuel growth in the global entertainment and media market over the coming years, research published this week shows.

The industry is expected to be worth $1.8 trillion in 2010, with the UK forming the largest market in Europe with revenue rising from $90bn in 2005 to $118bn in 2010 according to PricewaterhouseCoopers ‘Global Entertainment and Media Outlook: 2006-2010.’

The report says the industry is shifting from physical distribution to digital distribution of content, creating huge revenue opportunities for media companies.

Digital technologies such as broadband internet and mobile will become increasingly lucrative distribution channels, setting off the decline in growth of physical formats.

Licensed digital distribution is also providing an alternative to piracy.

Phil Stokes, UK leader of PricewaterhouseCooopers entertainment and media practice, said: ‘The rapid growth in broadband penetration is increasing the availability of legal digital alternatives for consumers demanding high quality content delivered in ways that match their individual lifestyles.’

Stokes says the UK annual growth rate of 5.5 per cent, compared to 5 per cent for Western Europe as a whole, is ‘driven primarily by solid performances in TV subscriptions, sports and business information, together with significant growth in internet advertising and access spending, video games and casino and other regulated games.’

A key driver for growth is an expansion in broadband penetration - it totalled 187 million households in 2005, and is expected to hit 433 million globally by 2010.

Meanwhile wireless subscriber growth and the rollout of next generation handsets and high-speed wireless networks will stimulate mobile markets.

The number of people with a wireless telephone subscription will reach 2.8 billion globally by 2010 - up from 1.8 billion in 2005.

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