Monday, August 21, 2006

Digital Broadcasters | PWC Says Asia-Pacific to Lead Media Growth

Digital Broadcasters Vendor News Asia highlights on Asia Pacific here from the new report from PricewaterhouseCoopers on the Entertainment and Media industry worldwide issued on August 8, 2006.

PWC says the worldwide industry will grow 6.6% annually to $1.8 trillion in 2010, with digital, mobile and broadband becoming increasingly lucrative distribution channels. New revenue streams are growing rapidly, the growth of physical formats has slowed, and availability of licensed digital distribution now provides consumers alternatives to piracy, the report says.

Digital technologies, chiefly broadband Internet and mobile, are becoming established and increasingly lucrative distribution channels that are changing the way consumers acquire entertainment and media content. Global spending via online and wireless channels reached $19 billion in 2005 and will increase to $67 billion by 2010.

Digital technologies consist of five categories: online rental subscriptions and digital streaming in filmed entertainment, licensed digital downloads and mobile music in recorded music, online and wireless video games, electronic books, and online casino gaming.

"We expect that Asia Pacific will remain the fastest-growing region for the industry, reflecting both the underlying economic growth and local developments and initiatives. The growth will be led by double- digit increases in Internet, TV distribution, casino and other regulated gaming and video games," said Marcel Fenez, Asia Pacific leader of PricewaterhouseCoopers' Entertainment & Media Practice. "Significantly, we also expect that the People’s Republic of China will pass Japan in 2009 to become the largest market in Asia Pacific."

Asia Pacific remains the fastest-growing region worldwide, led by explosive growth in the People’s Republic of China and India. Spending in Asia Pacific will average 9.2 percent compound annual growth—the highest of all of the regions—reaching $425 billion in 2010.

Television Distribution: Europe, the Middle East, and Asia Pacific will witness large increases in the number of subscription TV households showing double-digit gains. Continued piracy problems in Asia Pacific, however, will limit market potential in that region. Video-on-demand will expand in all regions, contributing to overall market growth.

The introduction of IPTV will contribute to subscriber growth, and the migration of subscribers to higher-priced digital services will increase revenue per subscriber. The market will reach $230.3 billion in 2010 from $154.4 billion in 2005.

Television Networks (Broadcast and Cable): Digital platforms will support new channels and fuel multi-channel advertising, which will be the principal driver during the next five years. New analog channels, digital broadcasting, and HDTV will increase the appeal of free-to-air channels. Distribution to mobile phones will further expand viewing and advertising. Public TV license fees in EMEA and Asia Pacific will continue to be slow-growing components of the market. Spending will increase to reach $227 billion in 2010 from $164 billion in 2005.

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