Review of 2010
Total Australian entertainment and media spending grew by 6.5 percent in 2010, compared to a growth of 5.3 percent globally, and up from 1.3 percent in 2009.
Australia’s bouncing back from the global economic crisis was due largely to our advertising market which rose by 10.9 percent in 2010 reflecting increases in international and domestic marketing budgets, primarily driven by stronger than expected results for out-of-home, subscription TV and free-to-air television. Respectively they achieved growth of 25.7 percent, 14.4 percent and 11.5 percent.
In addition, consumer spending on entertainment and media grew 3.7 percent in 2010, fuelled by healthy purchases of filmed entertainment products and increased internet access.
The next five years
PwC expects Australia’s total entertainment and media market to grow at a 4.1 percent compound annual growth rate from 2011 to reach $37.2 billion in 2015.
Consumer spending continues to dominate the entertainment and media market and is expected to grow to $22.2 billion by 2015, a compound annual growth rate of 3.9 percent. Advertising spending is expected to reach $15 billion by 2015, a compound annual growth rate of 4.4 percent.
Internet access spending represents a third of all consumer spending however we expect slowing growth as the market gets larger and nears saturation. The largest shift in share is experienced by interactive games, increasing from a 8.8 percent share in 2010 to an 11.4 percent share of consumer spending in 2015.