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.
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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.
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