Tuesday, June 12, 2012

Canadian entertainment and media market to outpace U.S., says PwC

The consulting firm Pricewaterhouse Coopers says that the Canadian entertainment and media market will gow at a 6.5% compound annual growth rate between now and 2016. Its Global Entertainment and Media Outlook 2012-2016 predicts that internet advertising will continue to grow significantly, led by mobile and that it will outpace the U.S. where compound growth will be about 5.2%.
“Mobile advertising is still a small market but it’s soaring in North America. Between 2010 and 2011 the segment grew by almost 149% in the U.S. and 109% in Canada,” says Michael Paterson, a partner in PwC’s Canadian Entertainment & Media practice. “Given the amount of time consumers are spending on their devices outside of making phone calls, it’s glaringly apparent how much of an opportunity this advertising medium is.” 
The report says that, in 2011, entertainment and media spending in North America grew by 3.3%; in Canada, it grew 5.7% due to higher spending on internet advertising (22.8%) and internet access (17.5%). It suggests there are several "tipping points" for Canada, including
  • Internet ads beat out TV ads by 2014: Canadian spending on internet advertising will overtake TV advertising by 2014 and be 23% larger by 2016.
  • Video games overtake consumer books: spending on video games will overtake spending on consumer and educational books in Canada this year, to be almost 20% larger by 2016.
  • Music: Canadian spending on music rose 2% in 2011, the first gain in many years, thanks to the growth in the concert and music festival market and a slower decline in recorded music spending. As a result, and due to increased spending on digital music, overall spending will increase from now through to 2016 at 4.1% CAGR.
The report was released with data for 13 segments of worldwide E&M markets in 48 countries.

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