Worldwide spending for entertainment and services is poised to reach $1.9 trillion by 2015, according to the PricewaterhouseCoopers' (PwC) global outlook for 2011-2015.
PwC expects the entertainment industry's post-recession upswing to continue over the next five years, with consumer spending and advertising revenue related to entertainment and media content (E&M) growing at a compound annual growth rate (CAGR) of 5.7 per cent globally, from $1.4 trillion in 2010 to $1.9 trillion in 2015.
E&M spending in Asia Pacific during the next five years is likely to grow at 6.5 per cent CAGR from $395 billion in 2010 to $541 billion, the PwC report says. The E&M growth in Asia Pacific would make it the second fastest region after Latin America.
PwC expects India's E&M sector to grow at 13 per cent CAGR between 2011 and 2015, from $19,546 million in 2011 to $31,731 million in 2015.
The report indicates that a bulk of the spending would shift from the traditional media to
digital platforms . While digital currently accounts for just 26 per cent of total industry revenues in 2010, PwC expects its share to rise to 33.9 per cent by 2015.
Digital platforms are driving future operating models, consumer relationships and revenue growth, the report said. Consumers in today's tech-laden world feel more empowered, and the E&M industry is being forced to create multi-purpose/multi-platform experiences, which also create additional money-making opportunities. The report states that digital is expected to account for 59 per cent of all growth by 2015.
"As we move into the golden age of the empowered consumer, the demand for digital experiences is increasing and becoming the norm. Advertisers are responding by seeking ever-greater involvement with the consumer's media and entertainment experience. For E&M companies, we see the route to competitive advantage in such an environment taking shape via increased multiparty collaboration as their businesses transform into Collaborative Digital Enterprises," says Marcel Fenez , PwC Global Leader (E&M practice).
The report predicts that the biggest challenge for entertainment and media companies over the next five years is to turn five key consumer attributes - convenience, experience, quality, participation and privilege - into a sustainable business model by offering advantages that outweigh the attractiveness of free or pirated content.
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