PWC Global Entertainment and Media Outlook 2011-2015 2010 saw the global economy begin to recover from

m its steep decline in 2009 and these improved economic conditions have played a major role in the recovery of overall E&M spending which rose by 4.6 percent. Over the next five years we forecast that aggregate E&M global spending will rise to $1.9 trillion in 2015, a 5.7 percent compound annual advance driven by economic growth, but masking the accelerating shift of spending from traditional to digital platforms. Visit this snapshot regularly for insights into the 13 segments and 48 countries covered by the Outlook. Our current focus is on the TV Advertising and Subscriptions segments, and the fast-growth market of Russia. Global Trends:

Advertising, the most cyclically sensitive of the three E&M spending streams, recorded the largest year-on-year swing, rebounding at 5.8 percent in 2010 from an 11 percent slump in 2009. Overall global advertising will increase at a 5.5 percent compound annual rate to $578 billion in 2015. Consumer/end-user spending also improved, rising 2.2 percent in 2010 after a fall of 0.4 percent in 2009. In contrast Internet access spending was barely affected by the economic cycle and is expected to rise to $408 billion in 2015, an 8.6 percent compound annual increase. Currently digital accounts for 26 percent of all spending but by 2015 we expect digitals share to rise to 33.9 percent. (Global spending 2010 (2015) non-digital vs. digital 74% vs. 26% (66% vs. 34%))

CEO Survey 2011 - Collaboration Reshaping their organizations for collaboration. More CEOs in E&M than in any other sector expect to form a new strategic alliance or joint venture in the coming year. And 57 percentcompared to 39 percent across all industriesexpect the majority of their innovations to be co-developed with partners outside their organization. Targeting innovation around consumer spending and behaviors. Two-thirds of E&M CEOs expect consumers to play a more active role in product and service development, putting customers and collaboration at the heart of their strategies for the digital age. Tackling the skills conundrum. 77 percent of E&M CEOs are concerned about the availability of key skills and their future talent pipeline's quality, loyalty and mobility. This compares with just 56 percent of CEOs across all industries.

Piracy 81 percent of the consumers who admit to pirating TV, movie, and video content say they will continue to do so. Mobile piracy is set to increase, with 40 percent of those who pirate content via traditional methods saying they will probably also pirate on mobile devices within the next six months. 76 percent are somewhat willing to pay a nominal fee if the content can be accessed closer to its release date. However, they are prepared to pay no more than $3 to download a movie and less than $1 for a TV program.