Study: Media industry to grow faster than U.S. economy

Posted by Erina Lin on August 11, 2010 at 2:39 PM

Media and communications spending will outpace U.S. economic growth as consumers and companies invest in mobile and Web access, according to a new report from Veronis Suhler Stevenson, CNBC reported.

Between 2009 and 2014, Veronis forecasts a 6.1 percent average annual growth for the media and communications industry, which outpaces the 5.8 percent average annual growth rate expected for the U.S. GDP, Business Wire reported. Total communications spending this year is on track to increase 3.5 percent.

Photo: InfoUSA

Growing demand for subscription TV content will be the catalyst for the entertainment and leisure sector, which grows at an average of 6.3 percent each year, to $353.9 billion by 2014.

However, traditional consumer advertising is expected to continue to drop in 2010 and 2011 as brands switch to alternative advertising. Money will continue to be shifted away from traditional ads to targeted, measurable ad formats, such as Internet and mobile.

Traditional consumer ads are forecast to reach $159.3 billion in 2014

The fastest-growing industry sector goes to "Business and Professional Information and Services", with 8.2 percent compound annual growth from 2009 to 2013.