Global Consumer Spending on Media Content & Technology Forecast - PowerPoint PPT Presentation

Global Consumer Spending on Media Content & Technology Forecast 2014-18 Most Credible, Consistent, Actionable Intelligence on Consumer Buying Patterns Report #3 of 3 in PQ Media’s Global Media & Technology Forecast Series 2014 Comprehensive, In-Depth Data & Insights by Country, Sector, Category & Segment Country & Sector Category & Segment 15 Leading Markets 5 Media Spending Categories 4 Global Regions Australia Japan Unit Purchases 15 Leading Countries Brazil Mexico Subscriptions 2 Media Spending Sectors Canada Russia Access Consumer Content China South Korea Devices Consumer Technology France Spain Software & Services Germany United Kingdom 28 Digital Media Segments Definitions & Segmentation India United States 14 Traditional Media Segments Rankings by Region & Country Italy 2008-13 Actuals 2014-18 Forecasts

Global 2 www.pqmedia.com

Global Consumer Spend on Digital Media Content & Technology $2,500 25% $2,024 $2,000 20% $1,500 15% US$ Billions % Growth $1,099 $1,000 10% $523 $500 5% $0 0% 2008 09 10 11 12 13 14 15 16 17 2018 Consumer Spend on Digital Media Growth Source: PQ Media 3 www.pqmedia.com

Global: Annual Per Capita Spend on Digital Media Content & Technology $400 25% $362.76 $320 20% $240 15% US$ $204.92 % Growth $160 10% $101.89 $80 5% $0 0% 2008 09 10 11 12 13 14 15 16 17 2018 Annual Per Capita Spend Growth Source: PQ Media 4 www.pqmedia.com

Global Rank by Spending – Digital Media Content & Tech Segments - 2013 Digital Media Content & Technology Segment Spending - 2013 Digital Media Technology Digital Media Content Broadband Internet Access Computer Tablets Wireless Data Subscriptions Smartphones Digital Games, Apps & Microtransactions Computer Laptops & Notebooks Multiplayer Games Feature Mobile Cell Phones Home Network & Storage Hardware Desktop Personal Computers (PCs) DM Entertainment & Workflow Software e-Readers Miscellaneous Digital Content Subscriptions Console & Handheld VG Hardware & Access. Miscellaneous Digital Content Downloads Digital Video Subscriptions Digital Video Downloads Digital Media Music Tracks Digital Media Security Software Video-on-Demand (VOD) e-Books MP3 Players & OEM Sat Radio Receivers Digital Media Storage Services Digital News & Info, Periodicals & Serials Subs Digital Audio Services & Satellite Radio Dial-Up Internet Access Digital News & Info, Periodicals & Serials Archives (US$ Billions) e-Directories & Databases $0 $25 $50 $75 $100 $125 $150 $175 Source: PQ Media 5 www.pqmedia.com

Global Rankings of Digital Media Content & Technology in 2013 DM Content & Tech Spend Per Capita Spend on DM Digital Media Growth Market Market Market Market United States South Korea Mexico South Korea China Australia China China Japan Japan Brazil India South Korea United States Canada Russia India United Kingdom India Mexico United Kingdom Canada Russia Spain Germany France Italy Australia France Germany Spain Japan Brazil Italy South Korea Brazil Italy Spain Germany Italy Russia Russia United States United States Australia Brazil Australia Canada Spain Mexico Japan United Kingdom Canada China United Kingdom France Mexico India France Germany Source: PQ Media 6 www.pqmedia.com

United States 7 www.pqmedia.com

US Consumer Spend on Digital Media Content & Technology $300 20% $299 $201 $200 10% US$ Billions % Growth $121 $100 0% $0 -10% 2008 09 10 11 12 13 14 15 16 17 2018 Consumer Spend on Digital Media Growth Source: PQ Media 8 www.pqmedia.com

US: Annual Per Capita Spend on Digital Media Content & Technology $1,000 20% $910.53 $800 15% $634.04 $600 10% US$ % Growth $397.74 $400 5% $200 0% $0 -5% 2008 09 10 11 12 13 14 15 16 17 2018 Annual Per Capita Spend Growth Source: PQ Media 9 www.pqmedia.com

US: Consumer Spend on Digital Media Content & Tech Results 2008-13 • US consumer spending on digital media content & technology increased 12.3% to $200.63 billion in 2013, with the average US consumer spending $634.04 on digital media. Technology represented the lion’s share of spending by consumers on digital media, reaching $145.33 billion, a 10.9% gain in 2013. Consumer spending on digital content increased 16.4% to $55.31 billion. In comparison, traditional media content & technology spending will be flat at $171.87 billion in 2013, with Pay TV access price increases helping to avoid a decline during the year, and averaging $543.14 per person. Overall digital media accounted for 53.9% of overall consumer spending on media content & technology, which reached $372.51 billion in 2013, representing a 6.3% gain over 2012, as the average US consumer spent $1,177.18 on media during the year. • US consumer spending on digital media content & technology is on pace to increase 11.1% in 2014, and is forecast to grow at an 8.3% CAGR through 2018, reaching to $299.44 billion, with the average US consumer spending $910.53 on digital media content and technology. During the 2013-18 forecast period, digital media technology will remain the larger of the two sector spending categories, reaching $186.52 billion in 2018, rising at a 5.1% CAGR, while digital media content spending by consumers will surge at a 15.4% CAGR to $113.05 billion in 2018. In comparison, consumer expenditures for traditional media content & tech will drop by 0.1% in 2014, and register a 0.3% CAGR decline during the 2013-18 period, to $169.52 billion in 2018, with the average consumer spending $515.49. Total media content & technology spending is projected to expand at a 5.9% rate in 2014, and post a 4.7% CAGR during the forecast period, reaching $468.96 billion in 2018, an average of $1,426.02 per person. Digital media will account for 63.9% of total media spending by consumers in 2018. Consumer Spending on Digital Media Content & Technology CAGR CAGR Media Sector 2008 2013 2008-13 2018 2013-18 Digital Media Content Revenues ($ Millions) $30,293 $55,307 $113,051 Y-to-Y Growth 16.4% 12.8% 15.4% % Share 25.0% 27.6% 37.8% Digital Media Technology Revenues ($ Millions) $90,658 $145,327 $186,384 Y-to-Y Growth 10.9% 9.9% 5.1% % Share 75.0% 72.4% 62.2% Total Digital Media Content & Technology Revenues ($ Millions) $120,951 $200,634 $299,435 Y-to-Y Growth 12.3% 10.7% 8.3% Source: PQ Media 10 www.pqmedia.com

US Rank by Spending – Digital Media Content & Tech Segments - 2013 Digital Media Content & Technology Segment Spending - 2013 Digital Media Technology Digital Media Content Computer Tablets Broadband Internet Access Computer Laptops & Notebooks Digital Games, Apps & Microtransactions Wireless Data Subscriptions Desktop Personal Computers (PCs) Digital Video Subscriptions Multiplayer Games Home Network & Storage Hardware Smartphones e-Readers Console & Handheld VG Hardware & Access. Digital Media Music Tracks Digital Video Downloads e-Books Digital Audio Services & Satellite Radio Video-on-Demand (VOD) MP3 Players & OEM Sat Radio Receivers Miscellaneous Digital Content Subscriptions DM Entertainment & Workflow Software Miscellaneous Digital Content Downloads Digital News & Info, Periodicals & Serials Subs Digital Media Security Software Digital Media Storage Services Dial-Up Internet Access e-Directories & Databases Feature Mobile Cell Phones (US$ Billions) Digital News & Info, Periodicals & Serials Archives $0 $10 $20 $30 $40 $50 Source: PQ Media 11 www.pqmedia.com