The issue of media cross-platform ownership is back on the FCC and Congress front-burner at the same time predictions expect global media revenues to soar. The two issues go hand-in-hand.
Media continues to be a strong investment. The latest estimate sees a growth rate for media globally at +6.6% over the next four years. Online and wireless spending will more than triple. By 2010, Internet advertising is expected to capture nearly 10 percent of global advertising dollars, compared with 3 percent in 2002 -- the fastest growth of all advertising platforms.
In other words, expect more commericals in the near future, not less. Despite the ad industry's concern of connecting brand marketing to consumers and that 30 seconds aren't working like they used to, really, there's no worries for the advertising world. Old thinking and old application is out, that's all.
Global media spending keeps growing and growing, fueled by expected gains for both new and old media. By 2010, global entertainment spending is expected to reach $1.8 trillion, thanks to the advances in digital media consumer reach.
This week's PricewaterhouseCooper report says the U.S. will remain the largest media spender -- led by video and Internet growth -- even though its predicted growth of 5.6% ($726 billion by 2010) is the slowest globally.
The key drivers:
* Internet advertising
* Anticipated renewed growth from the movie industry as it shifts to digital distribution
* Global event advertising (Olympics, etc.)
* Digital (satellite/HD/broadband) TV and Radio/Audio distribution
"Virtually every segment of the entertainment and media industry is shifting from physical distribution to digital distribution of content, creating new growth opportunities" said Wayne Jackson, global leader of PricewaterhouseCoopers' Entertainment & Media Practice.
So who will the winners be?
posted by Chris Kennedy @ Thursday, June 22, 2006,