Pricewaterhouse-Coopers predicts that spending on entertainment and media industry around the globe will surpass $1.1 trillion in 2003, rising by 3.7 percent from its 2002 level:

The firm forecasts that, spurred by a 30% CAGR in broadband, growth opportunities for television distribution, videogames, Internet access and home video will also spike. It believes that globally, more than 153 million households will be broadband-enabled by 2007.

Of note, the new report also forecasts double-digit CAGR increases for videogames between 2003-2007. PricewaterhouseCoopers singled out game industry as the fastest growing entertainment/media segment — outpacing Internet advertising and access spending. The firm thinks that games will be boosted on two fronts:

1. Online video gaming growth will be stimulated by increased broadband access
2. The wireless market will surge due to availability of new game-capable cell phones.

Next-generation console hardware will drive the industry's global expansion to $35.8 billion in 2007, growing at an 11 percent compound annual rate. [Gamasutra - pain in the ass registration required]