The global entertainment and media industries generated revenues of $1.23 trillion in 2003, and that figure is expected to grow to $1.67 trillion by 2008, according to a new study issued by PriceWater
NEW YORK -- The global entertainment and media industries generated revenues of $1.23 trillion in 2003, and that figure is expected to grow to $1.67 trillion by 2008, according to a new study issued by PriceWaterhouseCooper.
The "Global Entertainment and Media Outlook" study covers the music, movie, TV, radio, book, sports, videogame, theme park, newspaper and magazine sectors.
Both new and next-generation technologies will drive growth, helping the global market in these industries to achieve a 6.3% compound annual growth rate, or CAGR, through 2008.
The study found that the global music industry had revenues of $30.5 billion last year, and predicts that to grow by a 2% CAGR to $33.5 billion by 2008.
U.S. music sales, which were $11.9 billion in 2003, are growing at a 3% CAGR to reach $14 billion in 2008, the study says. This is still less than the $14.6 billion the study measured for the U.S. in 1999.
Europe, the Middle East and Africa (EMEA) had combined music revenue of $11.9 billion in 2003 and will have a slow CAGR of 1.8% to reach $13.1 billion in 2008. Latin America had music sales of $711 million in 2003 and is expected to shrink 4.8% to $555 million by 2008. Canada is expected to generate a 1.6% CAGR through 2008 to reach $711 million.
By 2008, digital distribution will account for 12.5% of the global music market, or $4.2 billion in revenues, according to the projections by PriceWaterhouseCooper.
Helping to drive digital sales, broadband penetration will increase from the current 82 million households worldwide to 320 million by the end of 2008.
In a breakdown by region, the study expects U.S. broadband penetration to grow from 21.6 million in 2003 to 54 million by 2008; EMEA will grow from 18.3 million to 81.4 million; the Asia Pacific region from 37.6 million to 169.3 million; and Latin America and Canada combined from 4.5 million to 14.2 million.
The study projects that the videogame business, which stood at $22 billion at the end of 2003, will surpass the music industry by 2006, when it will reach $36 billion -- on its way to $55.6 billion in 2008. The videogame business will grow at a 20.1% CAGR, compared with music's meager 2% pace.
Meanwhile, the study estimates that at the end of 2003, there were 1.18 billion global wireless telephone subscribers. It expects that number to reach 2 billion by the end of 2008.
By region, the study says, the U.S. had 148 million wireless subscribers at the end of 2003 and will grow to 197 million by 2008; EMEA had 385 million and will grow to 470 million; Asia Pacific had 510 million and will more than double to 1.1 billion; and Latin America and Canada had 117 million and will grow to 220 million.
Moving over to the movie business, the study tracks revenues of $75.3 billion in 2003 and expects the industry to reach $108 million by 2008.
Of the 2003 total, the U.S. portion is $34.3 billion, expected to grow to $46.6 billion by 2008. Of the $34.3 billion, video sell-through is the largest component, with revenues of $15 billion, while rental and box office each account for $9.5 billion. Sell-through in the U.S. is expected to grow to $24.5 billion by 2008, box office will grow to $12.5 billion, and rental is expected to shrink to $7.7 billion.
In EMEA, the movie business generated $22.6 billion last year. Of that, sell-through accounted for $12.8 billion; rental, $3.2 billion; and box office, $6.6 billion. By 2008, the study predicts, the total EMEA movie market will be $36.9 billion.
In the Asia Pacific, the study counted $13.3 billion in film industry revenue in 2003, of which box office was about $4.2 billion; sell-through, $3.4 billion; and rental, $5.5 billion. By 2008, the total is expected to be $17.3 billion.
In Canada and Latin America, the movie business garnered $4.7 billion in 2003; expectations are that it will grow to $6.5 billion by 2008.