The fastest growing markets in the region are Turkey (11.4% CAGR) and Russia (10.1%), while Hungary (5.5%), the Czech Republic (5.1%) and Poland (3.2%) will register lower growth rates than Romania, PwC said in a press release Tuesday.
However, Romania will remain the smallest media and entertainment market by volume in the region. The estimated value of the local M&E market was $2.44 billion in 2012 and is expected to hit $3.53 billion in 2017.
“Romania remains a dynamic entertainment and media market in the region. Yet, much of the growth will come from the Internet access segment, while advertising revenues and consumer spending will grow at a much slower pace. At the same time, some market segments, such as music sales, newspaper sales and radio advertising and licensing fees will decrease by 2017. This is in line with global trends where digital spending is growing much faster than traditional media products,” PwC Romania representative Florin Deaconescu said.
China, Brazil, India, Russia, the Middle East and North Africa, Mexico, Indonesia Argentina will see the fastest growth rate in the next five years, doubling their share in total M&E revenues between 2013 and 2017. Their average compound annual growth rate is more than double that of the overall M&E industry, according to PwC.
These markets will account for 22% of M&E revenues in 2017, almost double from 12% in 2008.
At the same time, more mature and technologically advanced markets, in North America, Western Europe and Asia Pacific, will play a significant role in driving the global shift towards digital consumption of M&E services, the press release reads.