Friday, June 30, 2006

Broadband Drives Internet growth says Report

Broadband is the driver behind the expotential media growth on the Internet. Typically this comes from streaming content and wireless apllications.

In 2005, the broadband universe totaled 187 million households, up from only 30 million in 2001. By 2010, there will be an additional 246 million broadband households, bringing the total to 433 million globally. Eventually broadband Internet access will reach the TV/ telephone/indoor plumbing penetration range, all around 99% in the US - although forced to choose, a fair number of people would rather watch TV and talk on the phone than poop and bathe in the house.

Mobile entertainment, driven by wireless subscriber growth, that is to say the rollout of next generation handsets and high-speed wireless networks, will grow wildly as well.

There were a total of 1.8 billion wireless telephone subscriptions globally in 2005. That figure will rise to 2.8 billion by 2010, adding one billion potential customers for mobile content over the next five years.

The U.S. will remain the largest but slowest-growing entertainment and media region, growing at a 5.6 percent compound annual rate, reaching US$726 billion in 2010.

But is the Asia Pacific region that remains the fastest-growing, led by explosive growth in China and India.

Spending in Asia Pacific will average 9.2 percent compounded annual growth, reaching $425 billion in 2010.

China will pass Japan in 2009 to become the largest market in Asia Pacific.

Digital technologies, the long list including online rental subscriptions and digital streaming of filmed entertainment; digital downloads and mobile music in recorded music; online and wireless video games; electronic books, and online casino gaming 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.

Wayne Jackson, global leader of PricewaterhouseCoopers' Entertainment & Media Practice says that virtually every segment of the entertainment and media industry is shifting from physical distribution to digital distribution of content.

He notes that this shift continues, we see more revenue opportunities for entertainment and media companies. So while physical distribution of content is declining, that decline will be offset somewhat by digital distribution, which is driving and creating new growth opportunities.

Facts are drawn from PricewaterhouseCoopers latest report.

No comments: