Analysts at PricewaterhouseCoopers expect digital content consumption to explode as broadband expands its reach.
The analysts expect that growth in digital distribution and mobile music will offset declining spending on physical music formats. "Globally, recorded music spending will rise at a 5.2 per cent compound annual growth rate to $47.9 billion in 2010," the analysts said.
New revenue streams are growing rapidly, the growth of physical formats has slowed, and availability of licensed digital distribution now provides consumers alternatives to piracy, the report, Global Entertainment and Media Outlook: 2006–2010, explains.
"Virtually every segment of the entertainment and media industry is shifting from physical distribution to digital distribution of content," said Wayne Jackson, global leader of PricewaterhouseCoopers' Entertainment & Media Practice.
"As this shift continues, we see more revenue opportunities for entertainment and media companies. So while physical distribution of content is declining, that decline will be offset somewhat by digital distribution, which is driving and creating new growth opportunities."
News source: Macworld UK