Media Statistics

According to media statistics in 2003 the global Media and Entertainment industry recorded a growth rate of 4.2 percent, reflecting a turnaround in the fortunes of the industry that was affected by economic downturn and the September 11 disaster.  While the US is the largest M&E market in the world, Asia Pacific is expected to become the growth engine, particularly India and China which currently have low media penetration. The deregulation of the media industry in these two countries coupled with their huge population bases makes them attractive propositions for the global media companies. The global M&E industry is controlled by a few large conglomerates, which have become bigger and more powerful over time through mergers and acquisitions.

The industry witnessed a flurry of M&A activity in the late 1990s, but the pace of deals has slackened over the past few years due to the economic downturn. With the prospects of the global economy looking brighter, however, consolidation has again gained momentum in the media industry.

Global growth will be driven by the ongoing global recovery, strengthening of the advertising market, increased adoption of the Internet and new wireless technologies, the broadband revolution and digitization of most media business streams. The survival and progress of M&E companies will depend on how well they handle three key issues: content, distribution and technology.

Media statistics suggest that the United States is the largest geographical sector of the global media market, accounting for 42 percent of this market. Europe, the Middle East and Africa generate 34 percent of the global revenue, while Asia Pacific accounts for 19 percent.

The Broadcast and Cable segment of the media industry grew from USD106.38 billion in 1999 to USD130.63 billion in 2003.
Revenues of US broadcast and cable TV networks amounted to USD47 billion in 2003, accounting for 36 percent of the market. The customization of content to suit local tastes and preferences is one of the major reasons behind this growth.

The number of channels increased due to digital cable and digital satellite systems. In 2001, growth declined because of the 9/11 attacks which had a negative impact upon advertising.

The distribution segment of the television industry grew from USD94.25 billion in 1999 to USD129.86 billion in 2003, according to media statistics.
The growth has been driven by digital upgrades and the easing of ownership regulations. Consolidation increased among Cable and Satellite (C&S) service providers during this period. Digital cable and digital terrestrial television offerings grew in turn.

Digital upgrades to more expensive digital cable and satellite is driving subscription spending in developed markets. Meanwhile, increased multi-channel penetration is fuelling growth in the developing countries.

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