Liu Minxia

    mllmx@msn.com

    THE Internet advertising, cinema and video games segments of the entertainment and media industry are projected to grow quickly in the following years while the newspaper and TV sectors will continue to see sliding revenues unless they redefine themselves and go digital, a PwC report said yesterday.

    China is the largest Internet advertising market in Asia, and the second largest globally, with revenue reaching US$23.2 billion in 2015 and US$44.6 billion by 2020.

    “Strong economic performance, an expansive middle class with an appetite for technology underpin China’s potent Internet advertising sector. And while new normal economic conditions now apply, the vast population size, coupled with the fact that more than half of households are without broadband access are strong indicators for further growth,” said Frank Cai, a PwC China assurance partner.

    Desktop paid searches made up 37 percent of China’s total Internet advertising revenue in 2015, a figure that is anticipated to rise to 40.2 percent by 2020.

    The nascent mobile segment is producing the most vibrant growth within the desktop sub-component, rising at a 25 percent CAGR.

    Cinema is another influential growth segment in China, with the nation’s box office on course to replace the U.S. as the country with the largest box office revenue by 2017, reaching US$10.3 billion, en route to a revenue of US$15.08 billion by 2020.

    For the newspaper publishing sector, both print and online readership are increasing even as revenues are declining, PwC predicts. China’s readership will grow by 6.9 percent to rank the third in the world by 2020, after the U.S. and Japan. For media outlets, standing out against non-traditional online news sources will require a distinct editorial voice and compelling stories, be that from long-term articles or viral content.