THAILAND: Entertainment and media booming in Asia Pacific
- From: wanker@xxxxxxxxxx
- Date: Mon, 24 Sep 2007 08:08:19 +0800
THAILAND: Entertainment and media booming in Asia Pacific
Internet, film, television, music spending increasing throughout region;
Thailand experiences 3.6% growth
Bangkok Post
Tuesday, September 18, 2007
According to a recent PricewaterhouseCoopers' global survey, the entertainment
and media (E&M) market in Asia Pacific rose 10.0% in 2006, making it the fastest
growing region in the world.
This increase was fuelled by growth in a number of industry segments. Internet
spending jumped 23% due to large increases in the broadband universe and a
surging online advertising market. Filmed entertainment rose 7.5%, led by
double-digit growth in box office spending and an emerging online subscription
rental market. Interestingly, recorded music increased 15.6% in Asia Pacific,
the only region in our survey to post a significant gain in this segment.
Which Asia Pacific countries are at the forefront of the E&M market, and where
does Thailand stand in comparison? Japan is the dominant E&M market in the
region, with $112 billion spent in 2006. The Japanese market rose 4.5%, its
largest increase in the past five years, reflecting the increased role played by
domestic demand and the growing flexibility of Japan's economy. Given these
trends, we expect growth in Japan's E&M market to average 3.3% compounded
annually during the next five years.
China came second with $78 billion spent on E&M last year. In 2006, China's E&M
market was the fastest-growing territory in Asia Pacific, with a 21.6% increase.
China's E&M market will continue to record double-digit annual gains that will
average 16.8% when compounded annually. By 2009, we expect China's E&M market to
surpass Japan's in terms of overall spending.
In Thailand, $4 billion was spent on E&M last year, up 3.6% from the previous
year. By 2011, the Thai E&M market is expected to reach $5.7 billion, at a 7.3%
compound annual growth rate, which puts it somewhat lower than the regional
average growth rate of 9.6%.
As advertising spending is growing in the region, what mediums are seeing the
increase? Advertising rose 6.5% in 2006, with internet advertising soaring 38.7%
and the remaining segments growing at single-digit rates. TV network advertising
climbed 5.5%, while newspapers increased 4.3%, out-of-home grew 4.2%, radio rose
3.8%, and magazines edged up 2.6%.
Over the next few years, the internet will continue to grow the fastest, rising
at an 18.8% compound annual rate. This was driven by increased online
penetration and an expanding broadband market. TV networks will grow by 6.5%
compounded annually, with a double-digit spike in 2008 associated with the
Olympics in Beijing.
Japan's $36 billion advertising market is the largest in Asia Pacific,
accounting for 47% of the total. China is next at $11 billion. We expect China
to be the fastest-growing advertising territory during the next five years, with
a 15.0% compound annual increase. India will grow nearly as fast at 14.6%.
In Thailand, $1.4 billion was spent on advertising last year, down 1.5% from the
previous year. Nevertheless, we expect advertising in Thailand to increase 4.9%
over the next five years, which is slightly lower than the regional expected
growth average of 6.8%.
Overall, we expect advertising in Asia Pacific to increase from $77 billion in
2006 to $108 billion in 2011.
What is the forecast for consumer and end-user spending? Consumer and end-user
E&M spending rose 11.2% last year. We expect faster growth during the next two
years, and a 10.6% compound annual increase through 2011.
Subscription household growth and an emerging mobile TV subscription market will
boost TV distribution by 18.1% compounded annually. Increases in internet
households and broadband subscriptions will lift access spending at a 16.9%
compounded annual rate.
In addition, new resort casinos in Macao and Singapore will contribute to a
15.7% compound annual increase in casino and other regulated gaming, and video
games will average 10.0% compound annual growth, boosted by rising online and
wireless growth and new console games.
Filmed entertainment will expand at a 6.8% annual rate as modern cinemas
contribute to box office growth and mobile music more than offsets decreases in
physical music spending. Spending will total an estimated $363 billion in 2011,
up from $220 billion in 2006.
What is the forecast for Thailand? Last year, consumer and end-user E&M spending
in Thailand rose 6.8% to $2.5 billion. Over the next five years, it is expected
to average an 8.6% annual growth rate, slightly lower than the regional average
of 10.6%.
What can we expect from this market over the next five years? We expect Asia
Pacific to be the fastest-growing region during the next five years. The region
will have the fastest overall economic growth, which will support steady
increases in each of the other segments. We expect overall spending to increase
to $470 billion in 2011 from $297 billion in 2006, growing at a 9.6% compound
annual rate.The above article is based on the eighth annual edition of
PricewaterhouseCoopers' 'Global Entertainment and Media Outlook', which covers
the forecast period 2007-2011. For more information on this report, please visit
www.pwc.com/th
Verasa Attanun is a Director at PricewaterhouseCoopers Thailand. We welcome your
comments at leadingtheway.
Date Posted: 9/18/2007
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