e-Business Newsletter. By e-Business Center PwC&IESE

This year the content industry will converge and engage in interdependent relationships. That is the opinion of the research firm, Outsell, that has elaborated a survey reviewing the trends for digital content in 2002. Experts forecast that as information professionals continue to deploy more and more digital content, they find themselves looking for help from vendors that just haven't arrived. The survey also states that digitisation of content does not mean that physical space will lose its importance in this industry. However, as digital space changes so will physical space. Legal rights and relationships in the industry will continue to be important, but some of the solutions to legal conflicts and contractual relationships will regain a measure of common sense. According to the Outsell experts, buyers are increasingly concerned that their content deployment practices are consistent with their contractual obligations and copyright law. [Full Story] (A free subscription is required) Entertainment and Media Industry will reach $ 1.4 trillion Tittle: Global Entertainment and Media Outlook: 2002-2006 Source: PricewaterhouseCoopers Date: May 2002 Abstract: According to PwC forecasts, the entertainment and media industry will continue to grow, reaching $1.4 trillion by 2006, for an annual growth rate of 5.2%. The majority of the growth will be driven by the digital distribution of content, aided by raising broadband penetration in the home (35 million broadband households by 2006). Most vulnerable to piracy, file sharing and unauthorised use, recorded music will be the slowest-growing segment, averaging only a 1.6% annual gain. Spending on recorded music will increase from $36 billion in 2001 to $39 billion in 2006. The home video market is booming due to the popularity of DVDs, although piracy will hinder growth. Filmed entertainment will expand at a 5.7% compound annual rate, increasing from $59 billion in 2001 to $79 billion in 2006. Digital distribution will develop slowly but will begin to have an impact on the market in 2006. Internet advertising and access spending will be the fastest-growing segment over the next five years, expanding by 12.1% on a compound annual basis and totalling $94 billion in 2006, up from $53 billion in 2001. [Full Story] ____________________________________________________________________________