Hollywood's Coming Growth Spurt
A new study predicts big gains by 2015 as THR breaks down the numbers.
Box office might be down in 2011 and studios are laying people off in their home entertainment divisions, but the five-year outlook for the global entertainment and media industry is downright enthusiastic. According to PricewaterhouseCoopers' annual study, worldwide spending in the sector will jump by a 5.7 percent compound annual rate, from $1.4 trillion in 2010 to $1.9 trillion in 2015. That's up from the 5 percent predicted in the 2010 study. "We are a bit more bullish than we were last year," says Stefanie Kane, a partner in PwC's entertainment and media practice. "The global economy started recovering perhaps earlier in 2010 than we thought, and advertising has bounced back." Box-office spending will be boosted by the expansion of 3D theaters around the world, which will raise ticket prices (including a whopping 13.3 percent in 3D-obsessed China) even as it tempers admissions growth. Meanwhile, shorter release windows will benefit video-on-demand services, padding the already-robust market for TV subscriptions and license fees. PwC also sees tablet computers as one of the most exciting opportunities for Hollywood. "People are willing to pay for that convenience and experience," says Kane. "Filmed entertainment is seeing a great heyday." Of course, one wild card impacting the projections is the quality of Hollywood product, a development the study acknowledges it "cannot predict."