Spending on online and mobile games
tipped to rise
BY GRACE CHNG
SENIOR CORRESPONDENT
SINGAPOREANS will be shelling out about US$238 million (S$303
million) a year on mobile and Internet games such as Angry Birds
and World Of Warcraft by 2016, a far higher level of spending than
gamers elsewhere.
The huge outlay will be up sharply from the US$150 million or so
that PricewaterhouseCoopers (PwC) estimates will be spent this
year.
It represents a compound annual growth rate of 10.9 per cent,
trumping the global rate of 7 per cent.
The proliferation of mobile devices like smartphones and tablets
are driving the rapid expansion of mobile and online games, while
spending on console games is slowing.
PwC partner Charlotte Hsu told a briefing on Monday that
spending on console games such as Halo and Uncharted 2 will
increase by only 3.5 per cent a year, from about US$100 million
this year to US$125 million in 2016.
'Singapore's high broadband household penetration of nearly 120
per cent - and some households have multiple subscriptions - and
the rapid adoption of smartphones and tablet computers have made it
easier for consumers to access and play Internet-based games,' she
said.
Ms Hsu was speaking at the release of a PwC report detailing how
entertainment and media sectors like TV subscriptions, video games
and newspaper publishing will perform over the next five years.
It forecasts that global spending in the entertainment and media
industry will rise from US$1.6 trillion last year to US$2.1trillion
in 2016.
The music industry is also expected to drive the sector here,
added Ms Hsu, with compound annual growth tipped at 6.1 per cent.
This expansion will be driven by the many live concerts that will
be held here.
The PwC report also forecast that newspapers will continue to
lead advertising spending and could have a 37 per cent share of
total advertising dollars in 2016, followed by television and then
Internet ads.
However, Internet ads are set to grow the fastest, from 9 per
cent expansion in 2011 to 16 per cent in 2016. PwC associate
director Adrian Teo said a key reason for the rise is that consumer
behaviour has changed.
'Consumers are watching TV and at the same time surfing or
posting comments on social media networks using their smartphones
or tablets,' said Mr Teo, who is part of PwC's Singapore
technology, infocomm, entertainment and media practice.
'People are also sharing and recommending content to friends and
families. And they are looking at content all day long, whether it
is on social media sites, reading something on a website or viewing
a video clip.'
Money, The Straits Times, Saturday, June 16 2012, Pg C10