Media 6 Week 2

Despite 5.5% growth of E&M companies, it appears the industry will continue to struggle and grow due to factors such as the trend toward free media and disinflation. However an closer examination of E&M spending against GDP of 36 different countries highlighted the rapid growth of E&M spending. E&M spending is even expected to outpace the growth of the GDP in more populated countries such as Brazil and Pakistan.

A mapping of 54 countries’ under 35 demographic and their projected E&M growth indicated an almost direct correlation. In countries such as India or Pakistan where much of the 35 and under bracket makes up their demographic, spending is projected to rise more rapidly. Conversely, in wealthier countries such as Germany and Japan whose demographic of 35s and under is among the lowest proportions in the world, a meagre expansion is expected. Therefore it can be said E&M spending is more impacted by the age of a country’s population rather than by their wealth.

It is reasoned that this is because younger consumers are more open to change and trying new technologies as their consumption habits are not as ingrained compared to the older generation.

Findings also suggest that audience’s preference in content remains local and this can be observed in countries such as the UK and China. In 2017, it is expected that China will overtake the US in box office revenue reinforcing this point. Some countries have also put into place legislation and restrictions on the amount of foreign content circulation.