Consumer Confidence Sparks Entertainment Biz Upturn

29 June 2004

Worldwide entertainment revenue will total nearly $1.7 trillion (€1tn; 700bn) by 2008 with annual growth averaging 6.3%, according to PricewaterhouseCoopers.

For the first time annual global growth will outpace domestic growth in US which the analyst forecasts will average 5.4% during the same period, reaching $680bn.

Wayne Jackson, global leader of PricewaterhouseCoopers' entertainment and media practice says consumers, who account for nearly three-quarters of industry revenue, feel better about spending money as the global economy recovers.

The main US pointers from Global Entertainment and Media Outlook: 2004-2008 are:

Movies. Box office revenue will rise 5.4% a year, to $12.3bn. Annual sales of DVD's will increase by 10% to $23.9bn but will be offset by a 4%l decline in video rentals to $7.7bn.

Music. Annual spending will rise by just over 3% to nearly $14bn by 2008. The digital sector will increase by 99% a year to $2.2bn.

Television. Advertisers will continue to move their spend into cable out of the networks. Annual cable growth of 8.8% will produce a $21.5bn advertising pot by 2008. Broadcasting spend will rise 6.5% a year to $22.7bn.

Newspapers. Annual spending of just over 3% will reach $65.5bn by the end of the target period.

Magazines. Spend will average nearly 4% a year to $38.4bn.

Video games . Domestic spend will average 15% to $15.3bn with the console game sector the biggest winner.

Data sourced from: USA Today; additional content by WARC staff