SPENDING in the entertainment and media sectors on the Chinese mainland and Macau is expected to grow at a compound annual rate of 14.6 percent in five years, driven by economic growth and technology penetration, an industry report said yesterday.
Spending on the two sectors is expected to reach US$134.5 billion by 2012 on the mainland and Macau, PricewaterhouseCoopers said yesterday in a report.
The expansion will outpace the global growth of 6.6 percent from 2008 to 2012 with global spending in these sectors topping US$2.2 trillion by 2012, PwC said.
"We are entering an exciting period of growth in China's entertainment and media markets, with significant increases expected over the next five years," said Vincent Cheuk, a PwC partner.
Internet advertising will be the fastest-growing segment at 34 percent compounded annually while Internet access spending will expand at 24.1 percent in the same period.
The Olympics Games and the 2010 World Expo are raising spending in the sectors.
Double-digit annual gains are projected for films, music, TV subscriptions and video games, among others.
"There is no doubt China is a key player that will drive the growth of global spending in entertainment and media," said Jane Kong, also a PwC partner.
"China leads the world in Internet households at 125 million and in 2008 it will surpass the US to become the world's largest broadband market and there is still ample room for future expansion."