US Entertainment Spend To Pass $120bn By 2010, Says Informa
US consumer expenditure on electronic media and entertainment passed the $100 billion mark in 2002, and is expected to rise by more than $20 billion by 2010, according to an upcoming report from Informa Media Group.
It is the cable and satellite sector’s subscriptions, pay-per-view (PPV) and video on-demand (VOD) revenues that are provide the bulk of the expenditure growth. This sector accounted for 46% of total entertainment spend in 2002 and is set to rise to 53% in 2010, mainly due to consumers’ conversion to digital packages.
| Consumer Expenditure ($m) On Electronic Media And Entertainment | ||||
| 2002 | 2003 | 2005 | 2010 | |
| TV subscription/PPV/VoD | 46,156 | 48,829 | 53,459 | 64,512 |
| DVD/video | 20,302 | 21,634 | 23,204 | 21,555 |
| Theatrical exhibition | 9,520 | 9,806 | 10,102 | 10,883 |
| Games | 12,548 | 10,565 | 7,135 | 8,870 |
| Music | 12,698 | 11,979 | 12,130 | 15,388 |
| Grand Total | 101,224 | 102,813 | 106,030 | 121,208 |
| Source: Informa Media Group, April 2003 | ||||
Digital TV will also extend its market share due to a stagnant cinema sector, according to the report. DVD growth is expected to be rapid, but will not be able to make up the shortfall from VHS losses. The games sector, meanwhile, appears to follow a five-year cycle, principally dictated by the launch of a new generation of consoles (see Web, Mobiles And iTV Move Into Fast-Growing Gaming Market).