Entertainment and Media Sector to Maintain Growth in China
China will be maintain the growth in the entertainment and media sector, this is based on a report from PricewaterCooper an accounting firm that predicted China’s entertainment and media revenue will hit $258 billion by 2020 with an average annual groth rate of 8.9 percent higher that the world average of 4.4 percent.
Internet advertising, video games and cinemas are projected and saw a CAGR of 13.9 percent, 7.4 percent and 18.9 percent respectively, and this is for the 2015 to 2020 period. A rapid growth is a good indication to have a wider economy, and experts believe that the entertainment and media sector is a perfect segment in the tertiary sector which is considered as a new economic driver which seen a rise after the failing of exports and heavy industry.
Price water Cooper’s report for the global entertainment and media industry covered 13 related industries in 54 countries with China as Asia’s largest internet advertising market and the second largest in the world accounting for 29 percent of the world total for 2015 and is predicted to go up to 31.9 percent by 2020. Having a stable economic performance and a growing middle class that has an appetite for technology undermines internet advertising in China. With such a huge population and a limited broadband access are strong indicator of having further growth in the future.
Cinema is also considered as another growth area, since china have already overtaken the US as having the largest box office revenue by 2017 as it reaches $10.3 billion which is expected to hit $15 billion by 2020. The increase is attributed to the fact that the population remains relatively under served because of the limited number of cinemas. China’s video game market sees a total revenue jump of $12.8 billion by 2020 compared to the revenue of 48.9 billion in 2015 which is pushed by online payments and virtual reality models.