Dramatic growth coming in ‘everything digital’

A new report by PricewaterhouseCoopers predicts media spending in videogaming, Internet advertising and pretty much everything digital will increase significantly over the next five years.

Global accounting firm PricewaterhouseCoopers is betting on a dramatic shift in entertainment and media spending over the next five years. According to the firm’s newly released Global Entertainment & Media Outlook 2009-2013, the increases will be concentrated in videogaming, Internet advertising and what the report gamely calls ‘digital everything.’ The report predicts consumer spending will surge after 2011.

On the television and filmed entertainment front, the report safely predicts ‘time-shifting’ will continue to change the market, with film downloads to TV sets and enhanced subscription rental services fueling online video distribution. It sees Canada’s video-on-demand subscription market almost doubling in the next five years, from a current US$110 million to US$214 million in 2013.

‘While the economic downturn will slow growth in the near term, faster access speeds and continuing demand for versatile, easy-to-use applications will drive the broadband market over the long run. Consumer demand for always-on connectivity and video will combine with smart phones and network upgrades to spur mobile Internet access,’ said Tracey Jennings, leader of PwC Canada’s entertainment and media practice, in a statement.

Indeed, Internet access itself will be a hot commodity – both wired and mobile – with a projected increase in spending from US$3.7 billion in 2009 to US$5.6 billion in 2013, an annual growth rate of nearly 10%.

The report says that while growth in the videogame market will soften in the short term, Canadian tax incentives for videogame development will help the market prosper over the long term by building the design talent pool and infrastructure.

From Playback Daily