TORONTO – The television network market in Canada will expand at a relatively steady 4.3% compound annual rate to $4.5 billion in 2010 from $3.7 billion in 2005, says Pricewaterhouse Coopers annual Entertainment and Media report, which was published last week.
The global report, which covers TV, radio, Internet, out-of-home advertising, newspapers, book publishing, theme parks, casinos, sports, movies and so on also says, among other things (all figures in US dollars):
* In the U.S., digital video recorders (DVRs), digital television, and high-definition television will enhance the appeal of television, leading to increased viewership and advertising.
* Venezuela will be the fastest-growing market in Latin America, at 14% compounded annually, but growth will be artificially augmented by continued high inflation.
* In the U.S., VOD will be the fastest-growing category, at 22% compounded annually, and will grow to $3.9 billion in 2010.
* In Canada, buoyed by the revitalization of cable, VOD is taking off and by 2009 will generate more revenue than pay-per-view will.
* Italy will be the fastest-growing country in Europe, with 22.9% compound annual growth, fueled by a rapidly expanding satellite market and growing IPTV.
* In Asia Pacific, Hong Kong has been the fastest-growing market during the past two years, more than doubling as a result of the introduction of new channels and a developing IPTV market. Although Hong Kong constituted less than 1% of all subscription households in Asia Pacific in 2005, it accounted for 57% of the region’s IPTV households.
* The TV distribution market in Latin America, regardless of distribution platform, has been gaining momentum during the past three years and will post double-digit increases beginning in 2006 that will extend through 2009 before dropping to a high-single digit gain in 2010.
* When it comes to radio in the U.S., satellite radio will increase from $1 billion in 2005 to $5.4 billion in 2010, a 39.5% compound annual increase.
* In Canada, the digital broadcasting market will boost the number of stations and expand the potential market, but increased audience fragmentation will dampen ad rates.
* Wireless games will experience the fastest rate of growth in the U.S., increasing from $646 million in 2005 to $2.3 billion in 2010, a 28.6% compound annual increase.
* Canada has one of the highest broadband penetration rates in the world, spurring growth in the online game segment.
* At the movies, U.S. box office growth will average 4.3% compounded annually during the next five years from a weak 2005, taking total box office spending from $9 billion in 2005 to $11.1 billion in 2010. However, admissions in 2010 will remain below the levels achieved during 2002-04.
* In Canada sell-through growth will average 4.9% compounded annually to $3.8 billion, and rentals will be flat at $1.3 billion.
* In music, licensed digital distribution will rise from $653 million in 2005 to $4.9 billion in 2010 in the States, a 49.5% compound annual increase. From a 5% share in 2005, digital distribution will constitute 33% of recorded music spending in 2010
