Net Driving Media Growth

The media and entertainment industry was the fastest-growing sector of the U.S. economy between 1994-1999 and will maintain its lead through 2004, according to new research by financial consultancy Veronis Suhler & Associates.

Fueled largely by the staggering growth of Internet advertising, media industry spending grew 8% to $524.7 billion last year and is expected to grow at a compound annual rate of 7.8% to $745.8 billion by 2004.

That compares with a 4.7% growth rate projected for gross domestic product -- the total value of goods and services produced in the United States -- during the same five-year period. Media and entertainment spending last year was divided into $165 billion for advertising, $129.9 billion for consumer spending, $110.6 billion for spending by public and private institutions and $119.2 billion for specialty media advertising.

New York-based Veronis Suhler is an independent merchant bank that tracks consumer media consumption, spending trends and the financial performance of media companies and publishes the data in annual reports.The Internet continues to drive media growth across the board

Credits: The Hollywood Reporter