The Irish media and entertainment industry will grow by 5.2 per cent per year to reach a value of $2.3 billion (€1.8 billion) by 2008, slightly lagging a projected global growth rate of 6.3 per cent, according to a new report.
The take-up of broadband and new technologies, the expansion of video game sales and the general vigour of the Asia/Pacific market will drive growth after a three-year "sleep" during which revenues remained relatively flat, according to PriceWaterhouseCoopers' (PwC) annual report on the sector, launched in Dublin's Digital Hub this week.
Global industry revenues of $1.2 trillion last year will swell to $1.7 billion by 2008, said Mr Peter Winkler, managing director of global marketing in PwC's entertainment and media practice.
The most mature entertainment and media market, the US, will experience the slowest overall growth, he said, while the Asian-Pacific zone would accelerate by 9.8 per cent annually.
In the Europe, Middle East and Africa (EMEA) market, digital music downloads - predicted to take off in 2006 - will account for 11 per cent of music sales by 2008, according to the report.
Broadband internet take-up is expected to grow at rate of 35 per cent in the Europe, Middle east and Africa region (EMEA), or 81 million additional households, ahead of the global rate of 31 per cent.
The Asia/Pacific region will also grow at 35 per cent, translating into 169 million additional households.
Overall, films, video games and television will record double- digit growth over the next five years, and even music - hampered by piracy problems that have contributed to negative growth for several years, according to Mr Winkler - will experience an upsurge.
Internet advertising is finally maturing, racing ahead of other advertising sectors, with a 22.9 per cent increase in 2003 after a weak 2001-02. According to PwC, the internet will remain the fastest growing advertising medium, expanding to a projected $18.9 billion in 2008, at an annual rate of 12.7 per cent.
EMEA will be the fastest growing region for the film industry, rising by 10.3 per cent annually through to 2008. "In Ireland, we have a positive story all around," with much opportunity for growth, said Ms Sinéad Parker, director of PwC strategy advisory services.
The Republic has a market ripe for broadband development: "We have 1.3 million households but only 70,000 to 80,000 broadband customers, and 30 per cent of adults online."
Digital television penetration had risen to 31 per cent of households, she said. Overall growth in the television market is pegged at 5.4 per cent this year, with the market worth $524 million. This will jump to $660 million by 2008, she says.
The film industry looks like it will grow by 5.3 per cent in the State in 2004, she said, with a value of $317 million.
