Filmed entertainment spending seen at $111 billion in 2012

By Gina Keating


LOS ANGELES (Reuters) - Consumer spending on filmed
entertainment will rise to $111.2 billion in 2012 from $85.9
billion last year, driven by Asia-Pacific growth and digital
upgrades in homes and theaters, according to a report released
on Wednesday.


The PricewaterhouseCoopers Global Entertainment and Media
Outlook: 2008-2012 said box office spending would increase at a
6.1 percent compound rate yearly to $36.9 billion by 2012,
outpacing home video spending, which will grow at a compound
annual rate of 4.9 percent.


Box office revenue will grow on 3D and digital upgrades and
rising screen numbers outside North America, the report said.


Home video will get a boost from new formats as Sony Corp's
Blu-Ray emerges as winner of the high-definition DVD format
wars, but piracy will hold down consumer spending, especially
in Asia-Pacific and Latin America, the report said.


Online rental subscription services such as Netflix Inc and
streaming video will emerge as the fastest-growing category,
with expected compound annual growth of 32.4 percent to $10.8
billion by 2012, representing more than half of the projected
rise in home video spending, the report showed.


Sales of DVDs and home videos will grow by a much slower
3.6 percent compound annual rate, to $44.9 billion in 2012, and
in-store rentals are seen relatively flat, at $18.3 billion --
a compound annual increase of 0.4 percent, the report showed.


Asia-Pacific is seen growing fastest, at a compound annual
rate of 7.9 percent, to $25 billion in 2012. Latin America was
expected to see a 6.7 percent annual compound gain, to $3.2
billion. The U.S. market was projected to rise by 4.6 percent
annually to $44.5 billion in 2012 from $35.5 billion in 2007.


Filmed entertainment includes theatrical box office, video
rental and purchase and online rental subscriptions.


(Editing by Braden Reddall)