OREANDA-NEWS. June 24, 2014. According to PwC's annual Global Entertainment & Media Outlook 2014-2018 survey, in 2013 the global entertainment and media (E&M) market reached a total volume of USD 1.7 trillion, and is on track to reach USD 2.2 trillion by 2018 at a compound annual growth rate (CAGR) of 5%.

Nine high-growth markets are powering global E&M revenue. China, Brazil, Russia, India, Mexico, South Africa, Turkey, Argentina and Indonesia are the markets to watch, collectively forecast to account for 21.7% of global E&M revenue by 2018, up from just 12.4% in 2009. The year 2018 is expected to see a major tipping point, when China overtakes Japan to become the world's second-largest entertainment and media market, behind only the United States.

The global picture: The advertising industry is spearheading the shift to digital media, which are increasingly driving growth

Globally, digital media are increasingly becoming the main drivers of revenue growth. Overall spending on digitally delivered content in the E&M industry (not including spending on Internet access) in the period 2013-2018 will grow by 12.2% per year to reach 65% of the overall global growth in E&M expenditures, representing nearly two out of every three dollars spent.

Advertising has been the trailblazer here; it is expected that by 2018 spending on digitally delivered content will account for 33% of total advertising spending, compared to only 17% of total consumer spending (not including spending on Internet access).

Natalia Yakovleva, Leader of PwC Russia's Communications, Technology, Entertainment and Media (TICE) practice: comments on global market trends: "For today's companies, it's not enough to have a digital strategy as just a part of their overall strategy. Their global business strategies should be more flexible and adapted to the realities of the new digital age. Success in this new reality isn't just a matter of new technologies, which remain just one of the components that go toward creating a whole new industry ecosystem. Consumers have come to realize that they can be at the centre of their own personal entertainment and media world, and business must take this into account in creating a more individualized, consumer-oriented approach. To remain competitive, companies in the entertainment and media industry should focus on building trust-based relationships with consumers, reacting rapidly to changes in consumer tastes and new technologies, and encouraging the adoption of new, innovation-driven approaches."

Mobile Internet will reach a penetration level of 55% in 2018. This should provide stimulus for the further growth of digital advertising and help boost its share of overall advertising revenues from 14% in 2009 to 33% in 2018. Thanks to the Internet advertising segment's 10.7% CAGR (versus a CAGR of only 4.4% for the advertising market as a whole), the industry is fast approaching a critical tipping point, where by 2018 Internet advertising revenues will nearly reach the level of TV advertising revenues. While in 2009 TV advertising revenues outstripped Internet ad revenues by a factor of two to one, by 2018 Internet ad revenues will lag behind TV by only USD 20 billion. In particular, the Mobile Internet advertising segment is forecasted to see significant revenue growth with a CAGR of 21.5%.