After the economic recession that hampered global industries on such a devastating level, the media and entertainment (M&E) industry is set to conquer again. Business analysts such as Lucintel and McKinsey & Company predict that M&E will rake in more profit in 2013 to 2017.
In its report “Global Media and Entertainment Industry 2012–2017: Industry Trend, Profit, and Forecast Analysis”, Lucintel forecasts that it will reach approximately US $1,289 billion in 2017 with a CAGR of 5% during 2012–2017.
McKinsey & Company states in its “Global Media Report 2013” that though consumer spending for entertainment differs according to regions, the M&E is doubtlessly growing.
The media and entertainment industry involves the creation and distribution of meida content, news, advertisements, and entertainments through variods media platforms such as TV, radio, Internet, newspapers, bulletins, and others.
Analysts say that the North America has the highest average entertainment spending, followed by Europe, Russia, Asia, Latin America, and Middle East. However, 64 percent of the global advertising growth will come from Latin America, Asia Pacific, and Central and Eastern Europe over the next five years.
Consumers spend most on digital entertainment and broadband access which is expected with the increasing number of Internet users worldwide. This says a lot about the trend in media and entertainment growth. The Internet is fast becoming the dominating media channel across the borders.
The fastest growing sector next to digital advertising and broadband are TV advertising, in-home video entertainment, video games, and audio entertainment. It seems that consumers are turning to home-based entertainments. They also buy music mostly from the Internet.
Out-of-home entertainment is also predicted to have a high growth rate. This includes attending to events, tours, and concerts. This means that people still like the experience of attending live events. They will continue to monitor The Rolling Stones or Imagine Dragons tour dates.
It is notable that printed forms of media and entertainment have the least growth rate. Newspapers, magazines, and book publishing have growth rates way below that of the digital ones. This means that the print industry is experiencing and will experience a growth lag as a result of the domination of the digital M&E.