The predictions, published as part of the latest edition of the professional services firm's annual Entertainment and Media Outlook, suggest that global consumer/end-user spending on entertainment and media will increase to nearly $1.4 trillion in 2007.
PwC forecasts that, spurred by broadband, next-generation technologies will significantly strengthen growth opportunities for television distribution, video games, internet access and home movies (bolstered by the DVD format). The firm sees the broadband market experiencing unprecedented expansion - nearing 30% compound annual growth - as penetration more than triples during the five-year period. Globally, PwC reckons more than 153 million households will be broadband-enabled by 2007.
Kevin Carton, global leader, PricewaterhouseCoopers' Entertainment & Media Practice, said:
"With sophisticated new video games, on-line movies, electronic magazines and other applications, consumers have a growing need for speed. Demand for broadband connectivity will spur subscribers to trade in their old dial-up for high-speed broadband access. And increasingly, their internet service provider will be a cable or phone company."
The new report also forecasts that the video games market will be boosted on two fronts. On-line video gaming growth will be stimulated by increased broadband access, and the wireless market will surge due to availability of new game-capable cell phones.
Next-generation console hardware will help drive the category's rapid expansion to $35.8 billion in 2007, growing at an 11% compound annual rate.
