Pacific Rim Chamber July 2003 Overview: The Future of Entertainment in the Rim Joyce Schwarz, JCOM, marketing emerging technology and entertainment www.joycecom.com 310-822-3119

What is the Pacific Rim? Pacific Rim includes countries bordering the Pacific Ocean from North and South America to Asia to Oceana. ‘ The Pacific Rim is an economic miracle created by many of the countries surrounding the Pacific Ocean. In 1944 geographer N.J. Spykman presented his theory about the ‘rim of Eurasia’. He proposed that the control of the ‘rimland’ as he called it would effectdively allow control of the world. More than 50 years later we are just beginning to value the power of the Pacific Rim.

Pacific Rim includes countries bordering the Pacific Ocean from North and South America to Asia to Oceana.

‘ The Pacific Rim is an economic miracle created by many of the countries surrounding the Pacific Ocean.

In 1944 geographer N.J. Spykman presented his theory about the ‘rim of Eurasia’. He proposed that the control of the ‘rimland’ as he called it would effectdively allow control of the world. More than 50 years later we are just beginning to value the power of the Pacific Rim.

Pacific Rim History The Pacific Rim continues to grain strenghth in the global economy. Since the early 1990’s the value of goods crossing the Pacific Ocean has been greater than the value of goods crossing the Atlantic. Los Angeles is the leader in the Pacific Rim. The value of United States imports from the Pacific Rim countries is greater than the imports from NATO members in Europe. Source www.geography.com

The Pacific Rim continues to grain strenghth in the global economy. Since the early 1990’s the value of goods crossing the Pacific Ocean has been greater than the value of goods crossing the Atlantic. Los Angeles is the leader in the Pacific Rim. The value of United States imports from the Pacific Rim countries is greater than the imports from NATO members in Europe. Source www.geography.com

APEC – Asia-Pacific Economic Cooperation APEC is composed of 18 Pacific Rim countries These countries are responsible for the production of about 80 percent of the world’s computer and high tech components. They include: Brunei, Canada, Chile, China, Indonesia, Japan, New Guinea, Philippines, Singapore, South Korea, Taiwan, Thailand and the United States. APEC formed in 1989 to promote free trade and economic integration of the member nations.

APEC is composed of 18 Pacific Rim countries

These countries are responsible for the production of about 80 percent of the world’s computer and high tech components.

They include: Brunei, Canada, Chile, China, Indonesia, Japan, New Guinea, Philippines, Singapore, South Korea, Taiwan, Thailand and the United States. APEC formed in 1989 to promote free trade and economic integration of the member nations.

Pacific Rim Map

Expanded Pacific Rim Country List

Broadcast Statistics 2003 & beyond Worldwide broadcast and cable television market is projected to grow at 8.7 percent compound annual rate. United States $129 billion in 2004, US fastest growing region with 11% annual increase. Asia – 7% annual increase Europe –8% annual growth

Worldwide broadcast and cable television market is projected to grow at 8.7 percent compound annual rate.

United States $129 billion in 2004, US fastest growing region with 11% annual increase.

Asia – 7% annual increase

Europe –8% annual growth

Station, Cable, DBS distribution Broadcast is fast expanding beyond television. Spending in the Station, Cable and DBS distribution is expected to grow at an 8% compound annual rate. US $211 billion by 2004 Asia/Pacific –fueled by increases in the premium subscription market will be the fastest growing region averaging 11% compounded annually.

Broadcast is fast expanding beyond television. Spending in the Station, Cable and DBS distribution is expected to grow at an 8% compound annual rate.

US $211 billion by 2004

Asia/Pacific –fueled by increases in the premium subscription market will be the fastest growing region averaging 11% compounded annually.

MUSIC statistics 2003 & beyond Spending on recorded music worldwide is expected to grow 4% in the next five years. US – from $35.3 billion in 1999 to $42.6 billion in 2004. US -$14.6 billion spending in 1999

Spending on recorded music worldwide is expected to grow 4% in the next five years.

US – from $35.3 billion in 1999 to $42.6 billion in 2004.

US -$14.6 billion spending in 1999

Legitimate sales of digital music Online music sales are projected to totally nearly $1.5 billion by 2004 estimating 8.2 percent of all music sales in the United States. An estimated $200 million will be spent purchasing singles online comprising 45 percent of the singles market . Online albums will grow to an estimated $1.3 billion by 2004 – 7.6 percent of the overall album market. Physical sales of music will increase but at a rate of 3% through 2004. Video music sales –shift to DVD music – will grow at 15.6% -- major revenue opportunity.

Online music sales are projected to totally nearly $1.5 billion by 2004 estimating 8.2 percent of all music sales in the United States. An estimated $200 million will be spent purchasing singles online comprising 45 percent of the singles market .

Online albums will grow to an estimated $1.3 billion by 2004 – 7.6 percent of the overall album market. Physical sales of music will increase but at a rate of 3% through 2004. Video music sales –shift to DVD music – will grow at 15.6% -- major revenue opportunity.

Music Asia/Pacific Healthier economy Rising CD penetration Emerging online market --- All will spur growth of 4% in the Asia/Pacific music industry through 2004.

Healthier economy

Rising CD penetration

Emerging online market ---

All will spur growth of 4% in the Asia/Pacific music industry through 2004.

PIRACY RATES Piracy rates are estimated at 50% or higher in China, Hong Kong, Malaysia and Pakistan and will continue to cut into consumer spending.

Piracy rates are estimated at 50% or higher in China, Hong Kong, Malaysia and Pakistan and will continue to cut into consumer spending.

Filmed Entertainment By 2004 film spending across the US, Europe and Asia is projected to reach $89 billion Compound annual growth rate of 8% Asia/Pacific – fastest growing segment will be at the box office at 8% over five years, home video growth hindered by piracy .

By 2004 film spending across the US, Europe and Asia is projected to reach $89 billion

Compound annual growth rate of 8%

Asia/Pacific – fastest growing segment will be at the box office at 8% over five years, home video growth hindered by piracy .

FILM PRODUCTION STATS US filmed entertainment industry dominates world -- $41 billion in 1999 in revenues from movies and television programs licensed domestically and overseas. The figure is projected to reach $59 billion by 2004. Asia/Pacific market will grow at 7% reaching $16 billion by 2004

US filmed entertainment industry dominates world -- $41 billion in 1999 in revenues from movies and television programs licensed domestically and overseas.

The figure is projected to reach $59 billion by 2004.

Asia/Pacific market will grow at 7% reaching $16 billion by 2004

What’s driving film growth in Asia/Pacific Theatre modernization Relaxation of government restrictions Improved consumer choice Lower prices DVD penetration Piracy continues to effect market growth.

Theatre modernization

Relaxation of government restrictions

Improved consumer choice

Lower prices

DVD penetration

Piracy continues to effect market growth.

INTERNET statistics Market in US, Europe and Asia/Pacific is expected to triple by 2004 -- $75 billion and growing at a 22.3 % compound annual rate. Internet is fastest growing media category US internet market will expand annual 22% to $37 billion by 2004 Asia/Pacific -- $13 billion by 2004 –users will be 205 million.

Market in US, Europe and Asia/Pacific is expected to triple by 2004 -- $75 billion and growing at a 22.3 % compound annual rate.

Internet is fastest growing media category

US internet market will expand annual 22% to $37 billion by 2004

Asia/Pacific -- $13 billion by 2004 –users will be 205 million.