Record industry to see new growth in next five years, PWC says
By CMU Editorial | Published on Wednesday 13 June 2012
Global spend on entertainment and media services will grow from $1.6 trillion last year to $2.1 trillion in 2016 according to accountancy firm PricewaterhouseCoopers in its latest Global Media and Entertainment Outlook report. Which is nice.
Though actual growth per year in the next five years will slow as the various entertainment industries deal with the shift from physical to digital products. PWC reckons digital content will account for 67% of entertainment and media spend by 2016.
In the music space, PWC reckons digital sales of recorded music will fully surpass physical product sales worldwide in the next five years – as previously reported, we have started to see digital outsell physical in various markets already, including the UK for one quarter. By 2016 digital could account for between two thirds and three quarters of recorded music revenue. The record industry will also go through a new period of growth in the next five years after years of decline as the recorded music firms have been coming to terms with the digital revolution. Elsewhere PWC reckons the live sector, despite recent wobbles, will also see further growth in the coming years.
Markets-wise, China passed Germany to become the third biggest market for entertainment and media in 2011, so that the biggest four E&M markets are now the US ($464 billion a year), Japan ($193 billion), China ($109 billion) and Germany ($99 billion). The E&M market in Brazil is also seeing considerable growth, according to the report, being already ahead of South Korea and set to pass Canada and Italy in the coming years.