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