China Becomes World’s 3rd Largest Media, Entertainment Market06-13 11:12 Caijing
China surpassed Germany to become the world’s third largest media and entertainment market in 2011, following the United States and Japan, according to a report released by PricewaterhouseCoopers on Wednesday.
The entertainment and media spending of mainland China amounted to $ 109 billion in 2011 and is expected to top $192.5 billion by 2016 with a compound annual growth of 12%, Tang Wei, PwC China partner specializing in the entertainment and media industry said.
The international auditing and consulting company showed in the report that China generated 2.7billion in movie entertainment in 2011, ranking the third largest market in the Asia-Pacific region, behind Japan and Australia while it surpassed Australia in 2011 to become the second largest box office market with$ 20billion in revenue.
“We expect China’s movie entertainment industry to reach $7.4 billion in 2016 with a compound annual growth of 22.1% and replace Australia be become the second largest market in the Asia Pacific region following Japan,” said Jiang Xiaopin, another PwC China partner, adding that the number of screens is likely to grow 5 times to 60,000 which will drive the country’s revenue in box office to grow at a compound annual growth of over 20%.
China’s leading movie theater owner Wanda Group bought AMC the second-largest U.S. theater chain AMC last month with 2.6 billion U.S. dollars, becoming the first Chinese company to have a major presence in Hollywood.
The move was hailed by critics as a remarkable step that China has made towards the U.S. as well as the entire North American movie industry.
In addition the report said the spending of China in online advertising is expected to reach $31billion in five years with an annual growth of 32.1%, replacing Japan to become the largest market in Asia Pacific, contributing 68% to growth in that region.
The report also showed that China spent $24.1billion on internet access in2011, making it the second largest market in the Asia and Pacific region.
Tang noted that industries including advertising, e-commerce and paid videos all will benefit from the country’s fast-growing internet.
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