Media expenditure is predicted to grow 7.8 per cent to $13.13bn next year, with an average yearly growth of 6.1per cent up to the end of 2016. The market for newspapers and magazines is predicted to grow next year, with the figures for newspapers showing a 2.5 per cent growth to $3.8bn, and magazines showing a 5 per cent growth to $953m.
A report released by MagnaGlobal, a division of Mediabrands, found that one of the major factors contributing to this increase next year is a predicted 4.5 per cent growth in the TV sector as subscription TV starts to grow at the same level as FTA. This new spurt will lift the overall television market above $4bn for the first time, meaning the market has grown by more than $1.5bn over the last ten years.
The two largest growth sectors are in the online space, with search predicted to grow by 30.6 per cent and online video by 54.8 per cent. Compound annual growth rates for these markets until 2016 are predicted to average at 21.6 per cent for search and 18.1 per cent for online video.
Radio will see a 3 per cent increase to $989m and out of home will grow 10 per cent to $608m. Victor Corones, head of MagnaGlobal Australia, said: "There is growth predicted for all media channels in 2011. However beyond 2011 there are new danger signals for newspapers and magazines with potential for these sectors to contract."
"Apps have been positioned as a saviour for both newspapers and magazines sectors, but app usage is more likely to fuel the internet sector metrics. The market is some way off understanding the value of these new users and there will be limited opportunities in the short term to monetise readership via apps. Publishers are also trying to come to terms with how to sell their offering via apps.
"Both print sectors have demonstrated their abilities in innovation in 2009 and 2010 and they need to continue to invent and innovate with great energy in the coming years to avoid being continually relegated
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