JUNE 2008 W3 ALERT
Filmed Entertainment Spending Will Rise to $111 billion by 2012
Growth comes mostly from Asia-Pacific growth and digital upgrades in home and at theaters
<Reuters><June 18, 2008>In all-new estimates from the PricewaterhouseCoopers Global Entertainment and Media Outlook 2008-2012 report, filmed entertainment will grow almost 30% from $85.9 billion in 2007 to $111.2 billion in 2012. The report tracks all forms of filmed entertainment including theatrical box office, video rental and purchase and online rental subscriptions.
The report projects growth in every category it tracks, although at widely varying rates. Box office sales are expected to increase 6.1% compound annual rate to $36.9 billion by 2012. On the other hand, sales of DVDs and home videos are projected to grow to $44.9 billion in 2012 representing a 3.6% rate of growth.
The report suggests that 3D and the switch to digital will fuel the box office growth. Home video sales will benefit from new technologies like Blu-Ray, and the end of the format war.
The fastest growing product area is expected to be both online rental subscriptions, such as Netflix, and streaming video. The report estimates this area will grow at a compound annual rate of 32.4% to $10.8 billion by 2012.
The fastest growing area is expected to be the Asia-Pacific region with an expected compound annual rate of growth of 7.9% to $25 billion in 2012. This is followed by Latin America, which is expected to reach $3.2 billion with a 6.7% compound annual rate of growth. Finally, the U.S. market is expected to grow at a 4.6% compound annual rate to $44.5 billion.