The Big Apple took the top spot in 2014 by accounting for $19.7 billion in entertainment and media spending, ahead of Tokyo’s $19.5 billion, according to a report out today from research and consulting firm PwC. NYC likely will remain the industry capital through 2018, with outlays increasing an average of 4.5% a year to $23.6 billion, says the report titled “Cities of Opportunity.” It would be followed by Tokyo (+0.7% a year to $20.1 billion in 2018), London (+3.3% to $18.5 billion), Seoul (+3.5% to $13.5 billion), Hong Kong (+5.6% to $11.2 billion) and Los Angeles (+4.4% to $9.9 billion).
The results could be significant: Entertainment and media (or E&M) will be an increasingly important source of jobs and wealth as the world becomes more urbanized, PwC says. It estimates that by 2018, the 30 top cities will account for $184 billion in E&M spending — up from $147 billion in 2013 — and 6.3 million jobs. Established industry centers will continue to dominate: E&M accounts for more than 10% of the GDP for London, New York, Los Angeles, Berlin, Madrid and Istanbul. But the fastest growth will take place in emerging cities including Beijing, Shanghai, Mumbai and Jakarta.
The firm forecasts that the bulk of E&M revenues in the 30 cities will continue to come from consumer spending in 2018, rising about 2.9% a year to $80 billion. But advertising will pick up 4.8% a year to $59 billion; Internet ads will pass TV by 2020. Meanwhile, Internet access spending will jump 7.3% a year to $45 billion. Digital platforms will account for 45% of the spending in 2018, up from 35% in 2013.