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Gadgets & Home Improvement

Device boom spurs media, entertainment spending

The boom in smartphones and other trendy gadgets is propelling spending on entertainment and media here, according to a new report.
The Straits Times - June 15, 2011
By: Irene Tham
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Device boom spurs media, entertainment spending

THE boom in smartphones and other trendy gadgets is propelling spending on entertainment and media here, according to a new report.

Spending on such products and services last year hit US$2.96billion (S$3.6billion).

But this is tipped to exceed US$3billion this year, and hit US$3.88billion by 2015, said accounting firm PricewaterhouseCoopers (PwC).

Its Global Entertainment And Media Outlook report found that digital goods - including online advertisements and e-books, games, movie and music downloads - accounted for 27per cent of all entertainment and media spending last year. This proportion is expected to rise to 36per cent by 2015.

'The high broadband and mobile Internet penetrations may have accelerated the way for digitisation in Singapore,' said Mr Greg Unsworth, PwC Singapore's technology, infocomm and entertainment and media industry leader.

'However, it is the device revolution - with the rise of digital technology and content, particularly through social networking - that has created a new normal in the industry as consumers are empowered like never before.'

New figures from the Infocomm Development Authority show that about 136per cent of the population have wireless broadband connections, either on their smartphones or laptops. The percentage means that some people carry two or more lines.

As robust as spending is here, the country still somewhat lags behind other Asian nations.

Last year, digital goods comprised 56per cent of entertainment and media spending in South Korea, 41per cent in Japan and 31per cent in China. All three are forecast to be well ahead of Singapore still by 2015.

Mr Unsworth said Japan and South Korea's lead is due to their more established broadband infrastructure which allows more consumption of online media.

China's voracious digital media appetite is due to the absence of a strong traditional print and broadcast industry, he noted.

Singapore trails these markets - even though its digital media consumption is high by most standards - because its print and broadcast industries are 'well established and have been able to largely address mass market needs', Mr Unsworth said.

'Traditional media will continue to play a major role in serving the content needs of Singapore consumers.'




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