(Press Release) NEW YORK, June 14, 2011—As we move into the golden age of the empowered consumer, the demand for digital experiences is increasing and becoming the norm, according to PwC's Global entertainment and media outlook: 2011-2015 (Outlook)—the most comprehensive five-year outlook for global consumer spending and advertising revenues directly related to entertainment and media content—released today.
The report finds that digital is acknowledged as the central driver of future operating models, consumer relationships and revenue growth. Emerging out of recession and into recovery in 2010, the Outlook forecasts that global entertainment and media (E&M) spending is expected to rise from $1.4 trillion in 2010 to $1.9 trillion by 2015, growing at a compound annual growth rate (CAGR) of 5.7 percent. The US E&M market is expected to grow at 4.6 percent CAGR reaching $555 billion in 2015, from $443 billion in 2010.
According to the Outlook, the entire E&M industry is being driven to create experiences that engage today's empowered consumer by redesigning the content experience to be multi-purpose and multi-platform which, in turn, creates multiple opportunities for monetization.
"Triggered in large part by the device revolution, the consumer migration to digital has continued at an even faster pace and at the same time advertisers are responding by seeking a greater involvement with the consumer's media and entertainment experience," said Ken Sharkey, entertainment, media & communications US practice leader, PwC. "The biggest challenge for E&M companies is to turn five key attributes that matter to consumers—convenience, experience, quality, participation and privilege—into sustainable, profitable and engaged relationships by offering advantages that outweigh the attractiveness of free or pirated content."
While digital currently accounts for just over a quarter of total industry revenues, it is expected to account for 58.7 percent of all growth in spending during the next five years, globally. Digital spending in the US is expected to account for 28.5 percent of all E&M spending in 2015, up from 20.6 percent in 2010.