In particular, convergent platforms will rise at double-digit rates and will represent more than 50% of global entertainment spending by 2011.
The report says that internet, TV distribution and video games will be the fastest-growing areas.
According to the report, filmed entertainment rose 2.9% globally in 2006, following a 2.6% decline in 2004. An annual growth rate of 4.9% on filmed entertainment spending is predicted, rising to $103bn in 2011 from $81bn in 2006. Digital downloading and digital cinema rollout will contribute to growth.
PricewaterhouseCoopers estimates that broadband households will grow to 540m in the next five years from the current 300m. Wireless subscribers are expected to grow to 3.4bn from 1.1bn.
Internet will lead growth in the advertising sector, with a compound annual growth rate of 18.3% leading to a tally fo $73bn in 2011. That will represent an estimated 14% of the global advertising market in 2011. Global advertising whole will show an annual growth rate of 5.4% rising to $531bn in 2011, the PwC analysts predict.
Principal growth will be driven by Brazil, Russia, India and China.
Meanwhile, the UK will is predicted to show dynamic growth as the market leader in EMEA and will grow to $124m in 2011 from $95bn in 2006, a compound annual growth rate of 5.2%, above the Western Europe average of 4.8%. Phil Stokes, UK leader entertainment and media practice, PricewaterhouseCoopers, said: 'This is driven by increased digital and wireless spending and the growth in broadband households which will result in a broadband penetration of 80% UK households by 2011.'
The US will remain the largest but slowest growing Entertainment Media market, with a compound annual growth rate of 5.3% to reach $754bn in 2011.
Asia Pacific will remain the fastest-growing region during the next five years, PwC forecasts, with the fastest economic growth and double digit increases in Internet, TV distribution, casino and other regulated gaming and video games.
Jim O'Shaughnessy, global chairman, entertainment and media practice, for PwC, said: 'Content, distribution and technology companies need to aggressively seek out new relationships to accommodate the shift towards convergence. Furthermore, companies will need to test new business models to address increased fragmentation and intellectual property in a digital era. Deal activity across the entertainment and media sector is accelerating, driven by the migration to digital formats.'
For more, see this week's Screen International.