Internet wired and mobile access consists of fees paid by consumers to Internet service providers and to wireless carriers for Internet access via mobile devices, whether provided as a stand-alone service or as part of a bundle. Figures include neither the purchase of content such as music nor spending on entertainment content downloaded over the Internet or through mobile phones, which is included in the respective content chapters. Internet access is a key driver of entertainment and media spending in most segments.
A sampling of global facts and forecasts:
"With telephone companies now distributing television programming, competition between cable operators and telephone companies has become more intense, and will drive the US broadband market. "
"In EMEA, wireless upgrades, 3G rollouts and flat rate pricing will drive mobile access, which will be the fastest-growing components of the market."
"In Asia-Pac, infrastructure investment will expand landline telephone reach in some countries and boost dial-up in the near term. This will result in dial-up returning to modest growth between 2010 and 2012, but not enough to prevent dial-up from suffering a 0.9 percent compound annual decline between 2007 and 2012."
Internet advertising: wired and mobile
Wired and mobile Internet advertising consists of spending by online advertisers on display, classified, paid-search, video, and other online formats as well as advertising delivered to mobile phones via text messages, display ads, video ads, local search, and other formats designed for mobile handset screens.
A sampling of global facts and forecasts:
"In Canada, the wired Internet advertising market will expand by 19.8 percent compounded annually, from $1.2 billion in 2007 to $3.1 billion in 2012."
"Brazil and Mexico will account for 85 percent of overall growth in Latin America during the next five years, driven by strongly rising broadband subscriber bases."
"Wireless network upgrades and mobile TV will lead to accelerated growth in mobile advertising., in Asia-Pac."
TV subscriptions and license fees
The television distribution market consists of revenues generated by distributors of television programming to viewers. It includes spending by consumers on subscriptions to basic and premium channels accessed from cable operators, satellite providers, telephone companies, and other multichannel distributors; video-on-demand (VOD); and television distributed to mobile phones. In the United States, EMEA (Europe, Middle East, Africa), Asia Pacific, and Canada, it also includes pay-per-view. In EMEA and Asia Pacific, public TV license fees also are included.
A sampling of global facts and forecasts:
"The conversion from over-the-air analog to digital television in February 2009 and the growing demand for high definition will boost subscription penetration in the US. "
"Western Europe will grow at a CAGR of 8.0 percent rate compounded annually during the next five years, the same rate as Central and Eastern Europe."
"In Asia-Pac, TV household growth, an emerging Internet protocol television (IPTV) market, and satellite launches will boost subscription household penetration and subscription spending. "
TV advertising
The television advertising market consists of advertiser spending on both terrestrial and multichannel television. It is distinct from advertising on mobile TV and advertising on TV Web sites, both of which are covered in the “Internet Advertising: Wired and Mobile” chapter. Net television advertising figures—consisting of spending minus agency commissions and discounts—are tracked in EMEA (Europe, Middle East, Africa), Asia Pacific, Latin America, and Canada. Advertising in the US and Russia is reported with agency commissions included, as is customary.
A sampling of global facts and forecasts:
"The DVR household universe in the US more than doubled in 2007, with household penetration rising from 9.9 percent to 20.6 percent. However, less than half of DVR users actually skip ads in playback, and over the long run the DVR should have a positive impact on advertising. "
"In Canada, new high definition channels are crowding out specialty channels and cutting into specialty advertising growth. "
"Sustained economic growth and new channels will fuel terrestrial advertising in Latin America."
Recorded Music
The recorded music market consists of consumer spending on physical formats—albums, single sound recordings, and music videos—as well as on digital distribution. Digital distribution consists of music distributed to mobile phones through wireless carriers and music downloaded from the Internet through licensed services. Mobile phone music includes ringtones, which are monophonic or polyphonic tones that play aloud when the phone rings; ring backs, which are ringtones or actual songs that the caller hears when a call is placed; and ring tunes, also known as master ringtones, master tones, and true tones, which are either portions of or an entire actual music track with full vocals and orchestrations, heard either when the phone rings or as a ring back; and full tracks that can be played on mobile phones. The recorded music market does not include satellite radio. Also not included are live performance and other merchandising revenues, which are likely to become more significant in the future. Spending is measured at retail, which can be substantially higher than wholesale or trade value revenues that are often reported.
A sampling of global facts and forecasts:
"Overall spending will increase over the next five years in Latin America and Asia Pacific, but will decline in the United States, EMEA, and Canada."
"In EMEA, wireless network upgrades and specialized handsets for music will propel mobile music spending, which will grow from $599 million in 2007 to $2.1 billion in 2012, a 27.9 percent CAGR. "
"In Canada, overall spending on recorded music will decrease at a CAGR of 1.0 percent from $694 million in 2007 to $660 million in 2012."
Filmed entertainment
The filmed entertainment market consists of consumer spending at the box office for theatrical motion pictures plus spending on renting at video stores and other retail outlets (the in-store rental market) and purchase of home video products in retail outlets (the sell-through market). It also includes online film rental subscription services, such as those in which DVDs are delivered via overnight mail, and streaming services whereby films are downloaded via a broadband Internet connection. The figures do not include music videos (which are counted in the “Recorded Music” chapter) or video-on-demand, pay-per-view, or movie distribution by cable, satellite, or telephone companies (which are covered in the “TV Subscriptions and License Fees” chapter).
A sampling of global facts and forecasts:
"In Asia-Pac, new multiplexes and digital cinemas will fuel box office spending, which will rise at a CAGR of 8.5 percent to reach $10.4 billion in 2012."
"In Canada, high definition DVDs, online subscription rentals, and digital streaming services will enhance overall home video spending, which will expand at a 5.1 percent CAGR to $6.6 billion in 2012."
"Download-to-own movies streamed over the Internet will increase rapidly from a small base, rising at a CAGR of 51.4 percent to total $900 million in 2012, in the US."
Video games
The video games market reflects consumer spending on console games (including handheld games), personal computer (PC) games, online games, and wireless games, as well as on video game advertising. The category excludes spending on the hardware and accessories used for playing the games.
A sampling of global facts and forecasts:
"In the US, the console video game market is being driven by the newest generation of platforms. Console/handheld games will continue to dominate the market, increasing at a compound annual rate of 6.3 percent to $11.7 billion in 2012 from $8.6 billion in 2007."
"In Asia-Pac, rising broadband penetration will drive online gaming in general and MMOGs in particular, especially in China. Across the region, online games will increase at a 13.3 percent CAGR, reaching $5.6 billion in 2012"
"The introduction of advanced wireless phones capable of downloading games will help to make wireless games the fastest-growing segment of the Canadian market, with a CAGR of 20.2 percent taking it to $346 million in 2012."
Consumer magazine publishing
The consumer magazine publishing market consists of spending by advertisers in consumer print magazines and on magazine Web sites and magazine mobile sites. Consumer magazine publishing also includes spending by readers to purchase magazines via subscriptions or at retail outlets as well as paid online subscriptions. Figures do not include licensing or other ancillary revenues. Trade magazines are covered in the “Business-to-Business Publishing” chapter.
A sampling of global facts and forecasts:
"Global print advertising in consumer magazines will total $42.5 billion in 2012, up 3.5 percent on a compound annual basis from $35.8 billion in 2007."
"In EMEA, web site videos and mobile roll outs will propel an emerging digital advertising market, which will increase from $211 million in 2007 to $1.4 billion in 2012, a CAGR of 45.1 percent."
"In Latin America, Brazil will remain the dominant market through to 2012, when it will still account for more than half the of total regional spending, more than double Argentina in second place."
Newspaper publishing
The newspaper publishing market consists of spending on daily print newspapers by advertisers and readers and of advertising on newspaper Web sites and mobile phone sites. Spending by readers includes both newsstand purchases and subscriptions. Sunday editions issued by publishers of daily papers are included in the daily paper totals. However, other weekly papers are not included because they constitute a separate and distinct market in terms of content, advertising base, and subscriber interests.
A sampling of global facts and forecasts:
"Spending in EMEA, the largest newspaper market, will increase at a 2.9 percent CAGR, reaching $83.2 billion in 2012 from $72.3 billion in 2007."
"In the US, by 2012, newspaper Web site advertising will account for 15 percent of total daily newspaper advertising, more than twice its 7 percent share in 2007. "
"Japan will remain the largest market in the Asia-Pac region through 2012 despite falling at a 0.6 percent compound annual rate, while the fastest growth with be in Indonesia, India and China. "
Radio and out-of-home
The radio and out-of-home advertising market consists of advertiser spending on radio stations and radio networks, plus out-of-home media such as billboards, street furniture (bus shelters, kiosks, etc.), transit displays (bus sides, on-train print, taxi toppers, etc.), sports arena displays, captive ad networks (in such venues as elevators) and other formats, and satellite-delivered radio subscriptions in the United States and Canada. Satellite radio in the United States also includes advertising. In EMEA (Europe, Middle East, Africa) and Asia Pacific, the market includes public radio license fees. Advertising spending is tracked in EMEA, Asia Pacific, Latin America, and Canada, net of agency commissions. Advertising in the US and Russia is customarily reported as gross spending, which is how it is reflected in our analysis.
A sampling of global facts and forecasts:
"Globally, satellite radio subscriptions will be the fastest-growing component, rising at a CAGR of 14.3 percent to $4.9 billion in 2012 from $2.5 billion in 2007. "
"In Latin America, Venezuela and Argentina will expand at double-digit CAGRs during the next five years, largely due to price inflation."
"A digital billboard that shows sequential ads that change every 8-10 seconds can generate 10-20 times the revenue of a poster that displays a single ad. Approximately 500 digital displays have been installed in the US in recent years. It is expected that there will be more than 500,000 digital displays in a few years’ time."
Theme parks and amusement parks
Theme parks and amusement parks are typically outdoor venues that feature rides as the primary attractions. Spending consists of admission fees and, if applicable, food, souvenirs, and other related purchases made at the parks. Expenditures at zoos, museums, water parks, and similar venues as well as at hotels are not included. Some parks do not charge admission fees but charge separately for rides, which are included in per capita spending. The amount of money people spend on merchandise and food is included in spending totals because it tends to relate closely to attendance and to the amount of time people stay at a park and because it is consistent with industry reporting.
A sampling of global facts and forecasts:
"The People’s Republic of China (PRC) and India are emerging as major theme park locations in Asia-Pac."
"In Canada, overall attendance will increase from 14.4 million in 2007 to 15.8 million in 2012, a compound annual rate of 1.9 percent."
"Mexico is the major market in Latin America, having overtaken Brazil in 2005. However the fastest growing market over the next five years, albeit from a small base, will be Colombia, with a CAGR of 7.6 percent."
Casino and other regulated gaming
Casino and other regulated gaming consists of betting activities conducted within brick-and-mortar casinos, including land-based casinos, riverboats, dockside casinos, tribal casinos, slot parlors, racinos (slots at racetracks), and limited-stakes casinos, as well as online gaming at Internet casinos, in virtual poker rooms, through betting exchanges, and on other online sites in countries where it is legal. The market also includes sports betting where it is legal. Lotteries, bingo, horse racing, and other gaming activities are not included. Online sports betting is counted in the sports betting totals. Spending totals represent gross gaming revenue, which is the house win, or the amount wagered minus the amount returned to players as winnings. In the case of virtual poker rooms, revenue consists of charges to the pot in each game. For legal sports books, revenue consists of the house cut deducted from the amount returned to winning bettors.
A sampling of global facts and forecasts:
"In Asia-Pac, major resort casinos in Macau will propel that area to become the largest single casino gaming destination in the world."
"New casino licenses in Chile and rising disposable income will contribute to casino gaming growth in other markets."
"Middle East/Africa will be the fastest-growing area of EMEA, increasing to $3.3 billion in 2012 from $1.9 billion in 2007, a CAGR of 12 percent. Western Europe will increase at a 6.6 percent annual rate to $30.5 billion in 2012."
Consumer and educational book publishing
The consumer and educational book publishing market consists of retail spending by consumers on consumer books; spending by schools, government agencies, and students on elementary, high school, and college textbooks, including graduate textbooks; and spending on books in electronic formats, or so-called electronic books or ebooks. Print sales include audio books. Educational books do not include supplemental educational spending, administrative software, or testing materials. Professional books are covered in the “Business-to-Business Publishing” chapter.
A sampling of global facts and forecasts:
"In the US, digital browsing and electronic books will revitalize the consumer book market, with consumer print books increasing from $21.7 billion in 2007 to $22.5 billion in 2012, a 0.8 percent CAGR."
"Declines in the school-age population will dampen the overall educational book market, which will expand at a 3.3 percent CAGR to $12.2 billion in 2012, in Asia-Pac."
"Central and Eastern Europe will be the fastest-growing portion of EMEA with a 5.1 percent CAGR through 2012, compared to 2.6 percent in Middle East/Africa and 2.3 percent in the much larger Western European market."
Business-to-business publishing
The business-to-business publishing market consists of spending on business information, print directory advertising (online directories are captured in the “Internet Advertising: Wired and Mobile” chapter), print advertising in trade magazines, advertising on trade magazine Web sites, and trade magazine circulation. It also includes spending on print and electronic professional books. Business information is an industry increasingly characterized by multinational suppliers selling to multinational buyers. Figures reflect spending by buyers of information in the various countries.
We classify business information into financial information, marketing information, and industry information categories.
Financial information involves securities, economic, and credit data.
Marketing information is used for selling products or services and to monitor sales and includes survey research, mailing lists, and demographic databases.
Industry information consists of data and content—such as market share information or competitive intelligence—focused on specific industry categories such as accounting, energy, health care, law, manufacturing, real estate, technology, and telecommunications.
A sampling of global facts and forecasts:
"The U.S. market will remain the largest region by a wide margin, expanding to $94.3 billion in 2012 from $82.8 billion in 2007, a CAGR of 2.6 percent."
"In EMEA, the shift in advertising from print to the Internet will cut into directory advertising growth, which will achieve a CAGR of just 1.8 percent, rising from $10.3 billion in 2007 to $11.2 billion in 2012."
"In Canada, bundled print/online packages will boost directory advertising, which will rise from $898 million in 2007 to $1.1 billion in 2012, a 3.9 percent CAGR ."
Sports
The sports market consists of gate revenues for live sporting events; rights fees paid by broadcast and cable television networks, television stations, and radio broadcasters to air those events; merchandising, which includes the selling of products with player likenesses or team logos and the selling of other intellectual property; sponsorships, which include naming rights and payments to have a product associated with a team, league, or event; and Internet, mobile, satellite, and other rights packages associated with sports events. Food concession revenues are not included.
A sampling of global facts and forecasts:
"US TV rights fees for the Olympic Games will contribute an additional $894 million in 2008 for the Summer Olympics in Beijing, $820 million in 2010 for the Winter Games in Vancouver and Whistler/Blackcomb in Canada, and $1.2 billion for the 2012 Summer Games in London. "
"The EMEA sports market will continue to be dominated by five countries—the UK, France, Germany, Italy and Spain—who will collectively account for 86 percent of the EMEA market in 2012."
"In Latin America, international deals and broadband growth will fuel TV rights and merchandising and sponsorship revenue."
