U.K. companies urged to pact
Media, show biz to make $152 billion in 2012
Blighty remains the largest market in Europe, Middle East and Africa for media and entertainment, worth $115 billion in 2007 and predicted to reach $152 billion in 2012.
Overall Europe, the Middle East and Africa will see its media market grow 6.8% a year from $570 billion in 2007 to $792 billion, while the U.S. will grow by 4.8% a year from $601 billion to $759 billion.
Asia-Pacific will increase 8.8% a year from $333 billion to $508 billion, with Latin America expanding from $51 billion to $85 billion.
However, to achieve this forecast level of activity in Blighty, the sector must respond to dramatic change in “devices, market and consumer behavior.”
Phil Stokes, head of entertainment and media at PricewaterhouseCoopers in the U.K., said: “We are seeing new business models take shape for entertainment and media companies.
“Some, such as the film industry, have experimented with alliances in the past, but those are just the initial skirmishes in a new world of strategic cooperation. No single company will be able to successfully go it alone.”
He added: “The industry must continue to extract revenue from traditional business segments while emerging technologies work to secure their position with consumers. Strategic convergence will now replace vertical consolidation.”
Broadband penetration continues to accelerate globally while mobile is gaining ground quickly.
PricewaterhouseCoopers expects the number of U.K broadband homes to increase from 56.4% of the population in 2007 to 84.9% in 2012.
Modern buildings, digital cinemas and 3-D upgrades are enhancing the cinemagoing experience, while high-definition TV subscriptions and HD DVD format wars will improve home viewing.
