PWC confirms digital as entertainment revenue driver

The growth of digital content will accelerate global spend on entertainment and media to US$1.6 trillion in 2013 according to the latest outlook from PriceWaterhouseCoopers.
Globally, mobile and digital platforms will expand at an average annual rate of 12.2% to reach $387 billion by 2013, leaving non-digital platforms to languish at a 1.2% annual average.
The report revealed continued decline in consumer and ad spending in some areas through to 2011, with an expected return to form in 2012-2013.

Global spending on advertising in entertainment and media is forecast to decline at CAGR of 0.6% from now through 2013, while internet and mobile advertising is expected to rise from 12% in 2008 to 19% in 2013.

However the media and entertainment sectors in Asia Pacific and Latin America and expected to be spared by radical effects of the downturn, growing at rates of 4.5% and 5.1% respectively.

The report claims that the downturn will see the growth of digital areas outpacing the rest of the industry well into recovery phase, with digital revenues continuing to take share from non-digital.
TV advertising, consumer and educational book and magazine publishing, recorded music, and newspaper publishing would all bare the brunt of the digital take-over.
“The increase in online elements is not compensating for declines elsewhere,” warned Phil Stokes, PriceWaterhouseCooper's UK leader for entertainment and media.
The report shares little joy with the European music industry which will see the shift to digital sales dragging down revenues also.