Global Media Spend Forecast To Hit $2 Trillion In 2017

Worldwide media and entertainment revenues will continue to grow at a rapid pace, mostly thanks to digital media -- smartphones, tablets and new media platforms.

Global worldwide media and entertainment will climb 38% by 2017 to $2.1 trillion, according to Pricewaterhouse Coopers, from the 2012 levels. This works out to a 5.6% annual compounded growth rate. In 2012, media/entertainment revenues were at $1.7 trillion.

The U.S. will continued to be the largest media market -- growing 4.8% annually to reach $632 billion in 2017, up from the nearly $500 billion in 2012. One major reason for continued U.S media growth is digital media, which will account for 43% of all media spending in the U.S. -- up from 31% in 2012.

Concerning U.S ad dollars, it is expected that ad revenue will rise at an 4.1% annual growth rate by 2017 from 2012, reaching $204 billion from $167 billion.

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While the U.S will still be the biggest market, Latin America will be the fastest-growing over the next few years -- increasing 10.6% in 2017 from 2012. The closely watched Asia-Pacific region will also climb at a strong pace -- 6.5%.

Pricewaterhouse Coopers said next year, mobile Internet revenues will be at $259 billion, accounting for over 50% of total Internet access spending -- which will overtake revenues from less-mobile computers/digital equipment via broadband.

A growing piece of mobile is mobile advertising revenues, which will climb at a 27% annual growth rate, getting to $27 billion in 2017 -- about 15% of all Internet advertising revenues.

The study says the annual value of North America's electronic home video market -- both pay-TV and over-the-top (OTT) streaming services -- will surpass box office value for the first time in 2017, landing at $14.8 billion in 2017 compared to box office $13.5 billion.

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