An Economic Outlook
As to PricewaterhouseCoopers' report, the global television network market is estimated to be $204 billion in 2009, growing at a compound annual rate of 6 percent from 2004. Latin America is projected to be the fastest-growing market, with a compound annual increase of 8 percent. Asia Pacific is expected to expand at a 7.1 percent compound annual rate followed by 6.4 percent growth in the United States, 5.4 percent in Canada, and 4.8 percent in Europe, Middle East and Africa (EMEA).
Multi-channel advertising {referred to as advertising on networks that are accessed by viewers via cable (analog or digital), satellite, digital terrestrial television (DTT), or other means, but that are not available in isolation from these services; in contrast with terrestrial advertising where it is referred to as advertising generated by free-to-air broadcast networks, even if viewers may receive such networks through a cable, satellite service, or DTT service} is projected to be the fastest-growing sector in each region, buoyed by rapid growth in digital households.
A generally favorable economic outlook, particularly in Asia Pacific and Latin America, is expected to sustain growth in terrestrial advertising in each region, but terrestrial will lose share to multi-channel. High-definition television in the United States and EMEA and digital television throughout the world is projected to expand during the forecast period, improving delivery quality and interactivity and making television a more attractive medium for advertisers.
The global television distribution market, on the other hand, is expected to increase from $146 billion in 2004 to $210 billion in 2009, a compound annual growth rate of 7.4 percent during the five-year forecast period. Asia Pacific and EMEA are the fastest-growing regions, at 13.3 percent and 10.5 percent, respectively, followed by Latin America at 9.8 percent. Canada is expected to grow at a projected 5 percent rate, and the United States by 4.7 percent compounded annually.
Subscription TV household growth is driving spending in Asia/Pacific, Latin America and EMEA, but saturated markets are dampening growth in the United States and Canada. The migration of subscribers to higher-priced digital services with more channels is boosting spending in the United States, EMEA, and Canada. Increased cable infrastructure investment, a more stable economic environment, and consolidation in the satellite market is stimulating spending in Latin America; free digital terrestrial television is cutting into the growth of subscription services in EMEA; and new satellite launches is driving the subscription base in Asia/Pacific. Video-on-demand is taking off in the United States, EMEA and Canada, and digital platforms are also supporting pay-per-view in those regions. Piracy of cable signals is a major problem in Asia/Pacific and Latin America, though conversion to digital should reduce this crime. In Canada, illegal satellite users continue to hurt the legitimate direct-to-home (DTH) market. In the United States, new local ratings systems and hard interconnects-hard wired connections between the central interconnect and individual cable head-ends within a TV market-will bolster advertising on cable systems. |
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24
Twentieth Century Fox
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