After a continued period of cutbacks following the credit crunch and banking crash, entertainment and media (E&M) spending has made a recovery according to PricewaterhouseCoopers (PwC).

The 12th annual edition of the firmís Global Entertainment and Media Outlook survey showed that compared with 2009, the entertainment and media sector grew by 3.1% in 2010 and predicts 3.5 % growth for 2011.

Advertising, described by PwC as the most cyclically sensitive of the three E&M spending streams, recorded the largest year-on-year swing, climbing by 5.8% in 2010 after an 11% fall in 2009. Overall PwC expects global advertising will increase by a similar rate, 5.5% CAGR, to $578 billion in 2015. It sees strong advertising performance for broadcast TV, online TV and also mobile TV.

Overall PwC forecasts that aggregate E&M global spending will rise to $1.9 trillion in 2015, a 5.7% CAGR, driven not just by improved economic growth per se, but also a marked transition to digital platforms. The consultancy calculates that at present digital accounts for just over a quarter (26%) of all spending but expects this share to soar to a third (33.9%) over the next five years. It believes that ongoing rapid change in technologies and consumer behaviours will see digital spending as the E&M industryís main growth engine over the next five years.

Of the digital products showing particular growth, the survey showed that video-on-demand (VOD) spending will pass pay-per-view in 2011 and reach $4.7 billion in 2015, a 9.8% CAGR increase from $2.9 billion in 2010.