However, other countries are adapting more quickly to the growing digitalisation of content and the proliferation of new kinds of devices for accessing it. China’s total spend on media and entertainment grew by more than 75% between 2006 and 2010, and it is expected to grow at nearly the same rate up to 2015. Braziltoo is growing exceptionally quickly.
"Brazil, India and China have fast-growing economies and middle classes who are big consumers of media," says Nick George, Entertainment and Media Partner at PwC. "There's quite a strong correlation between GDP growth and consumer spend on media and entertainment…so it's natural that we see the highest growth rates for media in these high-growth markets."
This is backed up by the findings of Nielsen’s global media consumption index, which shows that Asia (excluding Japan) and BRIC countries surpass Europe and Western markets on TV viewing and video consumption via the internet or mobiles. Marco Gomes, Founder of Boo-box, a Brazilian advertising network, emphasises the opportunities created by the growth of the middle class in emerging markets. “The Latin American market has grown thanks to the increasing buying power of the middle class,” he says. “We are witnessing an explosion of start-ups focusing on consumer audiences.”
Brazilian firms in particular seem eager to embrace interactive content. According to a global survey of 485 media & entertainment executives conducted by the Economist Intelligence Unit on behalf of UK Trade & Investment, four-fifths [of Brazilian firms] have developed products with an interactive interface to increase digital revenue in the past three years compared with only 52% of Chinese firms and 59% of European firms.
But Brazil, India and China aren't the only countries to look out for. "Any country with strong GDP growth and a rising middle class is going to have an interesting media market," says Mr George, citing Mexico, South Africa and the Philippines as examples.
This case study appears in Content disruptors, a UK Trade & Investment (UKTI) report written by the Economist Intelligence Unit. The report examines the key trends reshaping content markets and explains how companies are adapting to succeed in a fast-changing world. To shed light on these topics, the EIU conducted a global survey of 485 executives in the media and entertainment industry. To read the full report, click here
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views of The Economist Intelligence Unit Limited (EIU) or any other member of The Economist Group. The Economist Group (including the EIU) cannot accept any responsibility or liability for reliance by any person on this article or any of the information, opinions or conclusions set out in the article.
