INTRODUCTION:

PwC Outlook 2012 industry overview is a unique resource for the industry, offering a five-year outlook for global consumerspending and advertising revenues, along with insights into the technology,government, political, and business trends driving those forecasts.

Categories covered: Internet access spending: wired and mobile Internet advertising: wired and mobile Television subscriptions and license fees Television advertising Music Filmed entertainment Video games Radio Out-of-home advertising Consumer magazine publishing Newspaper publishing Consumer and educational

How they derive the data? Historical information: It is obtainedprincipally from confidential andproprietary sources. Forecast information: Recent trends in industry performance are analyzed, and the factors underlyingthose trends are identified.

Segment spending consists ofadvertising and end-user spendingrelated directly to entertainmentand media content.Inflation is taken into consideration and exchange rates not distorted by fluctuation in international exchange rate.

CONTEXT: Three global shifts: Changing consumer behavior is drivingboth of the implications. Consumersongoing migration to digital modes ofconsumption got accelerated by the economicdownturn. And it is now continuingto gain pace during the recovery,fueled by three forces now commonlysummarized as social, mobile, andlocal, to which others add, variously,global and commercial. Togetherthose forces will help companies tapinto an expanding pool of value: thisedition of Global entertainment and media outlook projects that total globalE&M revenues will raise from $1.6 trillionin 2011 to $2.1 trillion by 2016. From print to digital From fixed to mobile driven consumption From West to East, North to South

ANALYSIS/INFERENCE:

Consumer behavior is the main point for analysis in an industry like E&M. A permanent shift in consumer spending and behavior is the highest level of concern. Todays younger generations feel not just engaged but also immersed. Watch, read, or listen to what they want and when they want toranging from now to in my own good time. Access and consume content simultaneously via multiple devices and connections: TV, smart phone, tablet app, social media. Find and engage with provocative and relevant media experiences that cross the traditional boundaries of genre and immediacyand ones they can share, shape, and control.

Smart devices now enabling easier and fuller social interaction around such content as newspapers and magazines thatsame sense of socialized immersion is emerging in other media and is driving spending choices.

A useful historical parallel for the connected and socialized future may be the rise of online video games in Asia, where spending on online games overtook console/handheld games in 2010. Online gaming has led the way in creating flexible and sophisticated revenue models. To see the future of socialized media, online gaming is a good place to start.

The Global Entertainment and Media Outlook 2012-2016 shows Canadas E&M market growing at a 6.5% compound annual growth rate (CAGR) compared to 5.2% in the U.S through 2016. But growth of Internet advertising in both countries will continue to be significant and will be highlighted by the ability to capitalize on mobile advertising opportunities, says the report. In Canada, mobile advertising will grow at a 42.6% CAGR, followed by other internet advertising segments including video (31.9%), banner display (16.8%) and search (13.5%). Other fast growing segments will be Internet access at 11.8% and TV subscriptions and license fees at 8.6%. Mobile advertising is still a small market but its soaring i n North America. Between 2010 and 2011 the segment grew by almost 149% in the U.S. and 109% in Canada, says Michael Paterson, a partner in PwCs Canadian Entertainment & Media practice. Given the amount of time consumers are spending on their devices outside of making phone calls, its glaringly apparent how much of an opportunity this advertising medium is. Over the forecast period U.S. mobile advertising is expected to grow slightly slower at 42.4% CAGR. Paterson says there are challenges in monetizing the amount of time consumers spend on their mobile devices and Canadian and U.S. companies will need to act fast to capitalize on the opportunities . As networks are upgraded, new location-based marketing services are developed, and the capability to mine customer data improves, mobile advertising dollars will begin to flow. The report also shows that the overall advertising market was healthier in Canada than the U.S. last year, growing by 5% compared to 2% in the U.S. Over the next five years its expected that U.S. and Canadian advertising spending on a combined basis will grow similarly at almost 6%, driven in part by megasporting and political events such as the Olympics and elections from US$184 billion in 2011 to US$245 billion by 2016.

Conclusion:
Segments covered by the Outlook Business-to-business, Consumer and educational books, Consumer magazine publishing, Filmed entertainment, Internet access spending: wired and mobile, Internet advertising: wired and mobile, Newspaper publishing, Out-of-home advertising, Radio, Music, Television advertising, TV Subscriptions and license fees, Video games.

Digital Spending Digital spending consists of broadband and mobile Internet access; online and mobile Internet advertising; mobile TV subscriptions; digital music; electronic home video; online and wireless video games; digital consumer magazine circulation spending; digital newspaper circulation spending; digital trade magazine circulation spending; electronic consumer, educational, and professional books; and satellite radio subscriptions.