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Russian entertainment and media to grow at double the world average

0 6 June 2014

The Russian entertainment and media sector will be the third-fastest growing out of the world’s top-12, according to a report published by PwC. 

Between 2014 and 2018 the sector in Russia is expected to grow at 9.8% per year - twice as fast as the sector in the USA and three times faster than in the UK and France. Only Brazil (10.3%) and China (10.9%) are expected to have faster growing media and entertainment sectors. 

This growth will propel the the Russian sector up to 11th place in the list by 2018. However, it will still only be worth half as much as the sector in France, just over a third of the German sector and just 6% of the American one. 

Online media and entertainment will be the main driver of this growth. The fastest growing segment of the Russian media sector is expected to be online advertising, whic is to grow at 17.8% per year, 7 percentage points faster than the global average for the segment. 

Contextual advertising represents around 70% of the total, and is expected to be worth $3.14 billion by 2018, while banner advertising should grow to $1.16 billion. 

Despite this growth, PwC predict that internet advertising will still lag behind TV advertising, which will grow to $6.4 billion by 2018.

Internet access will remain the biggest segment within the entertainment and media sector, growing at 14.4% per year to reach $13.28 billion.  Again, this growth is significantly faster than the global average for the segment, which PwC puts at 9%.

 

Within the internet access segment, PwC predicts that revenue from mobile internet access will grow much faster than revenue from fixed connections. Income from mobile will pass fixed in 2014 and by 2018 is expected to be worth almost twice as much ($8.4 billion vs $4.8 billion).

The only segment expected to fall in value is book publishing. Although e-books are expected to become more popular, this will not be enough to maintain the segment as Russians - traditionally voracious readers - choose to read less and download e-books for free. 

Top image via Shutterstock

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