The United States Tops Ad Spending per Capita in 2014 at USD$567 per person

— Consumers in the United States are the Most Heavily Marketed to in the World

BOSTON, Feb. 26, 2015 /PRNewswire/ — Advertising spend in the U.S. totaled $181 billion in 2014, accounting for over a third of the global advertising market. This translates to an ad spend of $567 per person in 2014, according to the latest report from Strategy Analytics, Global Advertising Market Forecast Outlook. Australian’s were the second most marketed to population with an average ad spend per person of $486, followed by Norway with $472.

Average Advertising Spend per Capita 2014

Average Advertising Spend per Capita 2014

Click here for the report:  http://bit.ly/1ALEYHl

“To put this in perspective advertising spend per capita in the United States is 121 times larger than India and 16 times larger than China,” said Leika Kawasaki, Analyst and author of the report. “China which has the second largest advertising market globally has the second lowest average spend per capita at $35 per person.” 

TV continues to account for the largest share of advertising dollars in the U.S. though digital is closing the gap. In 2014, TV accounted for 43% of total ad spend in the United States where it accounts for over a third (37%) of the total global TV ad spend.

Other key findings from this report include:

  • Australia and Japan are the only Asia Pacific countries in the top 10 in average ad spend per capita.
  • All four Nordic countries made the top 10 average spend per capita. In terms of market size these four are in the bottom ten.
  • Western Europe ($264) has the second largest average spend per capita, however, it is less than 50% of North America ($541).
  • Asia Pacific and Middle East & Africa combined accounted for three-quarters of the world’s population but have the lowest average advertising spend per capita.
  • TV ad spend per TV households in the U.S. is 46 times larger than India.
  • Australia tops average digital ad spend per internet user in 2014, but its digital advertising market accounted for less than 3% of global digital ad spend.

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com 

US Contact: Leika Kawasaki, +1-617-614-0738, lkawasaki@strategyanalytics.com

Photo – http://photos.prnasia.com/prnh/20150226/8521501153
Logo – http://photos.prnewswire.com/prnh/20130207/NE56457LOGO-b

Emerging markets show increasing promise for digital earnings potential with China ranked highest among all emerging countries

– EY index ranks countries based on potential earnings from digital media

– China, India, Russia and Mexico are highest-ranked emerging markets

– Mature markets still lead in digital earnings potential

LOS ANGELES, Feb. 11, 2015 /PRNewswire/ — While the United States has the highest digital earnings potential of any country, emerging markets are rapidly growing, according to a recent study conducted by EY to show which countries offer media and entertainment companies the greatest opportunities for earnings from digital media. The study, Riding the new wave: Are you ready for accelerated digital media adoption?, shows that while mature markets still lead the way, emerging markets, led by China, offer significant digital growth opportunities.

The attractiveness index reflected in the study uses data from more than 36 sources to provide a structured cost-benefit analysis that assesses both the benefits and costs inherit in of each country. Among the factors on the benefits side are Internet penetration, bandwidth speed, smartphone adoption, content consumption levels, e-commerce and digital ad sales, consumer population and spending. The cost-attractiveness factors include digital piracy, political and regulatory risk and digital tax costs.

The top five countries with the highest net digital earnings potential, combining both cost attractiveness and benefits, are the United States, Japan, Germany, the UK and China.

When looking strictly at benefits, the United States takes the number one spot, followed by China, Japan, India and the UK.

When ranking just cost attractiveness, Germany places number one, followed by the United States, the UK, France and Australia.

John Nendick, Global Media & Entertainment Leader at EY, says:

“Emerging markets are primed for accelerated digital media adoption. Many of these markets have a large number of young, tech-savvy consumers with rising earnings potential. They are also “mobile first” with cheap smartphones and the rollout of 3G and 4G infrastructure rapidly coming together to democratize online access. The number of broadband connections in emerging markets listed in the index will be 2 billion by 2016, nearly twice that of the mature markets, and smartphone shipments to emerging markets are expected to double between 2014 and 2018.”

The four emerging market countries that top the index for digital earnings potential are:

  • China: By 2016, it is expected that China will have more than 500 million wireless broadband connections. The country boasts voracious digital media consumption, however, regulations may limit growth opportunities for foreign companies. China has a population of 534 million people aged between 15 and 39 and growing Internet penetration has created a surge in the adoption of digital content — in three years, China has added 3.5 times as many digital video viewers as the US.
  • India:  By 2016, it is expected that India will have more than 300 million wireless broadband connections. By 2020, with an average age of 29, India will be the world’s youngest country. Among other countries in the report, India ranks fourth for content consumption; it has the largest box office attendance, 160 million pay TV households and publishes 94,000 newspapers. While digital content consumption is tempered by low smartphone and broadband penetration, a surge in broadband adoption is expected with the rollout of 4G services. However, the ubiquity of media consumption has not yet translated into significant industry revenue. Both advertising revenue and consumer spending levels are relatively low. By 2016, India’s internet advertising market is forecast to be a little more than US$1b; the forecast for China is in excess of US$23b.
  • Russia: Russia has a large urban population and strong consumer spending. With 87% broadband and 50% smartphone penetration, Russia is a digitally active market. Media consumption is also high, both across traditional and digital media. However Russia ranks lowest in political stability and has the highest level of digital piracy in the study. While the country offers a favorable tax environment for foreign investment in digital media, it recently introduced significant restrictions on foreign ownership of mass media, forcing many media and entertainment companies to rethink their presence in the market. As a result of the new law, the country’s media foreign direct investment (FDI) restrictiveness ranking dropped from 8th to 14th place.
  • Mexico: While it doesn’t deliver the scale of India or China, Mexico’s consumer spending levels and stable political and regulatory environment are enticing. It places third in cost attractiveness among the emerging markets in the index. At nearly US$11,000, the country’s per capita consumer spending is the highest among the emerging markets in the study. Digital media consumption, however, has yet to accelerate. At 21%, Mexico has surprisingly low smartphone penetration and lags behind its South American counterparts Argentina and Brazil, primarily due to high-priced plans and a less competitive market. Media and entertainment companies also face a greater risk of fraud, with the country having a higher perception of bribery and corrupt practices.

Tom Connolly, Global Media & Entertainment Transaction Advisory Services Leader at EY, says:

“Opportunities for media and entertainment companies from this expanding wave of digital growth are enormous, as are the costs of missing out. New and meaningful investments in all markets will be critical to the long-term growth potential, independence and success of global media and entertainment companies.”

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

About EY’s Digital Media Attractiveness Index
EY’s Digital Media Attractiveness Index (DiMAx) is a proprietary tool designed to help media and entertainment companies with their international growth strategies by capturing key aspects of digital market maturity, as well as other media and economic factors. It sets out to answer four questions for M&E executives considering growth in international markets related to: market potential; risks and costs associated with entry; timing of entry; and capital allocation. www.ey.com/DiMAxInteractive

About EY’s Global Media & Entertainment Center
EY’s Global Media & Entertainment Center brings together a high-performance, worldwide team of media and entertainment professionals with deep technical experience in providing assurance, tax, transaction and advisory services to the industry’s leaders. Our network of professionals collaborate and share knowledge around the world, to provide exceptional client service and leverage our leading market share position to provide you with actionable information, quickly and reliably. www.ey.com/mediaentertainment

Peter Kelley

Steve Honig

EY Global Media Relations

The Honig Company, LLC

+44-20-7980-0333

+1-818-986-4300

peter.kelley@uk.ey.com

press@honigllc.com

Streaming Behind the $21Bn Mobile Music Market in 2021

— Mobile music streaming and the advertising spend it generates are the key drivers for the growth

BOSTON, Feb. 4, 2015 /PRNewswire/ — Strategy Analytics’ “Global Mobile Music Market Forecast (2001-2021)” predicts that the total market value will grow from $12.8Bn in 2014 to $21.3Bn in 2021, driven by the combined effect of the ascendency of mobile music streaming (paid subscription and ad-funded free listening) in all markets, the transition from physical to digital music consumption in Japan, and the increasing consumption of legal music content by mobile users in China and other emerging markets.

Logo – http://photos.prnewswire.com/prnh/20130207/NE56457LOGO-b

Click here for the forecast: http://bit.ly/16cMcZS

Click here for additional analysis in the report “Love It Or Hate It, Mobile Music Is In Full Stream”: http://bit.ly/1yzjMRM

The increasing popularity of mobile music streaming has been a trend across different markets, but other kinds of mobile music consumption do not just go away.

“Over the last two years, we have witnessed a fast growth in both demand for and supply of mobile music streaming services in particular in North America and Western Europe, which is coupled by a slow decline in pay-per-download sales,” said Nitesh Patel, Director, Wireless Media Strategies (WMS). “The popularity of streaming services is also seen in Asia Pacific, Eastern Europe and Latin America, though in these markets the sales from pay per download are still growing, albeit at a slower pace.  On the supply side, in addition to the familiar names like Spotify and Deezer that continue to expand, including through partnerships with mobile carriers and device makers in different markets, there are also local services that have experienced fast growth as well, like Saavn and Gaana in India and Tencent in China.  We expect the trends to continue in the forecast period.”

“Meanwhile, we have also seen the slowdown in the highly profitable personalization services, like ringtone and ringback tone selling offered by mobile operators, particularly from China and other Asian markets,” said Wei Shi, Analyst in the Wireless Media Strategies research program. “There are promising signs that Chinese consumers are embracing mobile streaming and more of them are consuming legal content.  In Japan, the world’s second largest music market, the mode of music consumption is transitioning from physical to digital.  With smartphone penetration increasing, we expect the pace of transition to accelerate, which will provide a new impetus to the growth of the global mobile music market.”       

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com 

European Contact: Wei Shi, +44-1908-423627, wshi@strategyanalytics.com 
US Contact: David Kerr, +1-617-614-0720, dkerr@strategyanalytics.com

How to Meet the Global Infrastructure Challenge in an Age of Austerity

New KPMG report spotlights 100 world-class infrastructure projects that balance solving problems of society today while preparing for demands of the future

TORONTO, Nov. 12, 2014 /PRNewswire/ — KPMG International’s Infrastructure 100: World Markets Report, highlights key trends driving infrastructure investment around the world. A global panel of industry experts identifies 100 of the world’s most innovative, impactful infrastructure projects showing how governments are coming together with the private sector to overcome funding constraints to finance and build projects that can improve quality of life  both solving immediate needs and planning for future societal demands.

The report looks at infrastructure based on the dynamics of four key markets: Mature International Markets (like Canada, Australia, UK), Economic Powerhouses (including the US and BRIC countries), Smaller Established Markets (like Chile, Sweden, New Zealand, Korea), and Emerging Markets. The panel of independent industry experts evaluated over 400 diverse and compelling projects to ultimately select the final 100, based on:

Scale How does the scale of the project relate to similar developments in its class?
Feasibility Is the project plan feasible and sustainable?
Complexity How challenging or complex is it to get stakeholder support?
Innovation Is there a particular challenge the project overcomes?
Impact on society Does it improve quality of life or promote economic growth?

With a total estimated value of over US$1.73 trillion, the 100 projects illustrate a range of infrastructure investment, some with a potentially transformative impact that could change the face of nations. Many of the projects are designed to drive economic growth by connecting people and resources to global and local markets (40% of projects featured); others will help provide better access to reliable power and clean water (30% of projects); while others are focused on improving society through things like healthcare and education.

Meeting the funding challenge
However, the Infrastructure 100 also bring to light affordability concerns and the need for governments to make difficult choices about where to spend with funding in short supply. Balancing the aspirations of a nation with the need for true social benefit is not an easy challenge.

“Each country has its own approach to developing and funding infrastructure, yet all share the universal challenge of creating the right conditions to attract investment so desperately needed,” says James Stewart, KPMG’s Chairman of Global Infrastructure. “Private capital continues to play a critical role, but investors need economic and political stability before committing. Consistency and sustainability are the key, in setting policy, the right regulatory environment and establishing a steady deal flow through project pipelines.”

Attracting private investment
The report illustrates the critical role of private investment in meeting the infrastructure challenge, with different investment dynamics in each market category:

Economic powerhouses have significant infrastructure needs  either to support rapid growth and urbanization or to rebuild, repair or upgrade aging assets. “The panel of industry experts identified a surprisingly high reliance on public sector debt sources,” said Stewart.

Emerging markets  represent a frontier for private finance in infrastructure, although a lack of funds, inadequate planning, and unstable political environments have limited the availability of projects that could attract private money.

Mature international markets  A combination of privatization, regulation and a wide range of investors has heightened competition for infrastructure in these markets. An increasing trend for asset sales or privatizations is identified in the report.

Smaller established markets  tend to favor domestic financing, with international financiers restricted by the lack of major projects, competitive local capital and currency risk. However, KPMG’s report notes an increasing need for these markets to consider collaborative, cross-border infrastructure projects that deliver regional economic growth and bring the scale of major projects that international investors are seeking.

Building for the future
The Infrastructure 100: World Markets Report strikes a note of caution over the limited supply of specialist talent that poses a big threat to the momentum of infrastructure development. It also touches on new technology and questions when it will have a meaningful impact on the infrastructure industry in the same way it has transformed other sectors. However, the report also acknowledges the continued ability of the sector to innovate, with trends such as capital recycling and asset management helping to make better use of budgets and generate vital funds for further investment.

“Ultimately, we see a better world supported by infrastructure projects that are desperately needed, those that are opportunistic, and others that are truly visionary,” said Stewart.

About the Infrastructure 100: World Markets Report
This report is the result of in-depth discussions by a distinguished panel of independent industry experts from around the world. It looks at infrastructure in four key markets: mature International markets; economic powerhouses; smaller established markets; and emerging markets. The independent judging panels assessed hundreds of project submissions based on feasibility, social impact, technical and/or financial complexity, innovation and impact on society to ultimately select the final 100.

*View a complete list of the 100 projects online at: www.kpmg.com/infrastructure100

About KPMG’s Global Infrastructure Practice
For more information, visit www.kpmg.com/infrastructure.

About KPMG International
For more information, visit www.kpmg.com

Laura Jablonski, Head of Marketing & Communications, Global Infrastructure, +1-416-777-8849, ljablonski@kpmg.ca; Kent Miller, Global Communications, +1-908-313-5037, ktmiller@kpmg.com

In Vitro Diagnostics Players Go Global, says Frost & Sullivan, as US and Europe Markets Slow Down

– Fast-rising Asia-Pacific emerges as latest hotspot for IVD manufacturers

MOUNTAIN VIEW, California, Oct. 10, 2014 /PRNewswire/ — Despite economic and industry challenges, the global in vitro diagnostics (IVD) market is growing robustly – at double the rate of the global pharmaceutical industry. The market will remain buoyant as the recent success of cost-saving companion diagnostics tests and personalized medicine is driving the uptake of various IVD tests and opening up the opportunity to expand test menus. While the U.S. and European markets remain important, their slowdown is demanding an alignment with the global market. As a result, the Asia-Pacific region is becoming a lucrative destination for IVD manufacturers.

Analysis of the Global In Vitro Diagnostics Market, Frost & Sullivan

Analysis of the Global In Vitro Diagnostics Market, Frost & Sullivan

New analysis from Frost & Sullivan’s Analysis of the Global In Vitro Diagnostics Market finds the market earned $47.27 billion in revenue in 2013 and estimates this to reach $62.63 billion in 2017. The study covers immunochemistry, self-monitoring blood glucose (SMBG), point-of-care testing (POCT), molecular diagnostics, hematology, clinical microbiology, hemostasis and tissue diagnostics.

Download the analysis’ complimentary research preview by visiting: http://bit.ly/ZfPNmk

“The broad application potential, combined with downward pricing trends enabled by microfluidics integration, is fuelling the long-term growth of the point of care testing (POCT) segment. In spite of market uncertainties, the hematology segment too is gaining traction through the launch of new products, support of an existing installed base, and needs of emerging markets,” said Frost & Sullivan Life Sciences Senior Industry Analyst Divyaa Ravishankar. “In addition to these segments, the molecular diagnostics space holds promise due to continued demand from the developed U.S. and European markets.”

However, low public health reimbursement for SMBG products in the U.S. and Europe is adversely affecting the development of this segment. IVD companies are pursuing emerging markets to compensate for the drop in market pace in developed nations. With pricing pressures and intensifying competition pervading emerging markets, IVD companies need to operate strategically in these territories.

Further, strained laboratory budgets, workforce shortages, and fewer visits to the doctor by people who have lost their employer-sponsored health insurance are hindering the sale of IVD tests globally. Insufficient connectivity in healthcare facilities is limiting the ability to provide diagnostic testing, adding to market woes.

“Nevertheless, as diagnostic testing moves towards process simplicity and decentralization, demand will rise,” noted Ravishankar. “Not only will this encourage entry into the molecular diagnostic market through acquisitions but it will also increase penetration of biomarkers that can be tested at a point of care level.”

Market participants need to employ a diverse set of strategies rather than rely on comprehensive product portfolios to expand their businesses. A mix of the following strategies are expected to be implemented:

  • Investing in next-generation sequencing
  • Strengthening product portfolio in a specific area
  • Venturing into emerging markets by establishing partnerships with local companies
  • Acquiring a clinical laboratory improvement amendments (CLIA)-certified laboratory to rapidly commercialize new diagnostic tests
  • Out-licensing of proprietary technology platforms or collaborations with major research institutes
  • Integrating big data into product development and increasing connectivity of devices
  • Offering pared down personalized machines to improve access and clinical development

Analysis of the Global In Vitro Diagnostics Market is part of the Life Sciences (http://www.lifesciences.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: US Hematology Diagnostics Market, US Next-generation Sequencing Market, Global Next-generation Sequencing Market, European Next Generation Sequencing Markets, Analysis of the Global Tissue Diagnostics Market, and upcoming research, US Immunochemistry Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion 
Join Us: Join our community 
Subscribe: Newsletter on “the next big thing” 
Register: Gain access to visionary innovation

Analysis of the Global In Vitro Diagnostics Market 
NE3E-52

Contact: 
Jennifer Carson 
Corporate Communications – North America 
P: 210.247.2450 
E: jennifer.carson@frost.com

Twitter: @Frost_Sullivan 
Facebook: facebook.com/FrostandSullivan 
Linkedin: http://linkd.in/1nL4auZ

http://www.frost.com

Phtoo – http://photos.prnasia.com/prnh/20141010/8521405904

Consistent Innovation Secures Future of Global Medical Battery Market, Finds Frost & Sullivan

– Persistent advances in medical devices increase the demand for efficient, high energy density batteries

LONDON, Sept. 29 2014 /PRNewswire/ — The global medical batteries market is expected to experience sustained growth owing to technological advancements and booming regional demand. Strong potential offered by emerging economies, especially in the Asia-Pacific, will offset the sluggish growth rates in mature markets such as North America and Europe. Market growth will be bolstered by the increasing acceptance of wireless medical devices and continuing innovation, especially in high energy density batteries for wearable medical devices.

Market Segmentation

Market Segmentation

Photo – http://photos.prnewswire.com/prnh/20140929/148889-INFO

New analysis from Frost & Sullivan, Global Medical Battery Market, finds that the market earned revenues of $1.84 billion in 2013 and estimates this to reach $2.74 billion in 2020.

Asia-Pacific’s large population, low penetration, and increasing prevalence of chronic illness are driving demand for off-the-shelf medical devices. As a result, conventional medical batteries used in back-up, hearing aids, pacemakers, and implantable cardio defibrillators will see strong adoption in the Asia-Pacific. A similar trend in expected in the Middle East.

“The availability of advanced medical devices including cordless surgical devices, prosthetic devices, lifesaving implantable devices and neurostimulators spurs the uptake of batteries,” says Frost & Sullivan Energy and Environmental Research Manager Suba Arunkumar. “The advent of cutting-edge technologies such as robot-assisted surgeries and remote patient monitoring is also fuelling developments in medical device batteries.”

Since the American and European markets are saturated in terms of advanced device adoption, and present high entry barriers, only select battery manufacturers can compete for market share. This has led to highly priced components and lower sales volumes.

“US- and Europe-based manufacturers must shift their base to the Asia-Pacific in order to capitalise on the immense opportunities the region offers,” suggests Arunkumar. “Meanwhile, certain specialised, certified manufacturers are turning to consolidation, acquiring major battery or material manufacturers, in a bid to expand their footprint in the global medical battery space.”

If you are interested in more information on this study, please send an e-mail to Chiara Carella, Corporate Communications, at chiara.carella@frost.com.

Global Medical Battery Market is part of the Power Supplies & Batteries (http://www.powersupplies.frost.com) Growth Partnership Service program. Frost & Sullivan’s related studies include: Global Lithium-ion Battery Market, Global UPS Services Market, and North American Generator Set Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on “the next big thing”

Register:         Gain access to visionary innovation

Global Medical Battery Market
MA32-27

Contact:
Chiara Carella
Corporate Communications – Europe
P: +44-(0)-20-7343-8314
M: +44-(0)-753-3017689
E: chiara.carella@frost.com 
http://www.frost.com

Photo – http://photos.prnasia.com/prnh/20140929/8521405635

APAC Hospitality Investments in 2013 Highest in 5 Years

1H 2014 continues to see healthy level

HONG KONG, Aug. 21, 2014 /PRNewswire/ — Cushman & Wakefield, Global Real Estate Consultancy, in their latest report on the hotel markets across 17 gateway cities and prime destinations in Asia and Australia, reported that hospitality investment market in the Asia Pacific reached a record high transaction volume of US$12.83 billion in 2013, the highest in the last 5 years and over 30% higher than 2012.

There had been a substantial weight of capital invested in the core markets with mainland China accounting for US$2.636 billion or 20.5% of the total investment volume, Singapore the second largest market at US$2.634 billion, followed by Japan at US$2.610 billion and Australia at US$2.271 billion. Hotel investments were also more widespread across the region in 2013, where emerging and non-core markets like Cambodia, Macau, Maldives saw some assets changing hands.

Akshay Kulkarni, Regional Director of Cushman & Wakefield’s Hospitality Services for South Asia and Southeast Asia said: “Hospitality investment volume in 2013 more than doubled since 2008 and can be attributed to the excess liquidity, the low borrowing costs and the region’s favourable tourism growth and outlook.”

The cities included in the report are Singapore, Hong Kong, Tokyo, Bali, Seoul, Mumbai, National Capital Region (India), Bangkok, Shanghai, Jakarta, Kuala Lumpur, Beijing, Ho Chi Minh City, Sydney, Melbourne, Perth and Brisbane. 

In the first half of 2014, total investment volume of hospitality assets reached US$5.203 billion, which is 9.5% higher compared to the same period last year. While the core markets of Japan, Singapore, mainland China and Australia are still the most traded ones and constitute about 68.8% of the investment volume, other emerging markets such as Philippines, Malaysia, Sri Lanka and Indonesia have experienced higher investment quantum compared to the same period last year.  For 2014, Cushman & Wakefield expects the hospitality investment market to moderate, and likely to close at US$9.0 to US$10.5 billion.

Table 1 : Asia Pacific Hospitality Investment Volume in US$ (million)

Countries/regions

2013

2012

2013 H1

2014 H1

Australia

2,271.06

2,699.10

592.42

654.27

Cambodia

6.40

8.71

Mainland China

2,636.26

1,558.60

787.56

1,678.62

Hong Kong

1,155.03

1,022.10

400.53

246.77

India

141.28

89.70

89.37

84.31

Indonesia

14.00

31.61

55.91

Japan

2,609.65

2,337.51

1,234.71

881.74

Korea

40.12

241.39

31.47

91.53

Macau

419.05

115.97

Malaysia

137.29

123.15

57.41

309.18

Philippines

35.85

96.34

35.85

204.16

Singapore

2,634.34

742.80

974.08

364.65

Sri Lanka

42.33

8.67

7.73

30.24

Taiwan

55.80

288.38

40.03

6.82

Thailand

205.11

350.67

176.22

166.76

Vietnam

246,04

184.28

246.04

44.66

Others (incl. Maldives)

181.94*

77.34

249.57

Total

12,831.55

9,774.29

4,750.76

5,202.58

Source: RCA Analytics, Cushman & Wakefield Hospitality

In 1H 2014, some notable transactions include the 5-star Park Hyatt in Melbourne sold by the GIC Pte Ltd to Hongkong-based Fu Wah Group for US$120.5 million (or US$502,000 / key), Hilton Hua Hin Hotel sold to Thai-listed Saha-Union PLC for US$98.9 million (or US$334,000 / key) and Sutera Harbour Resort at Kota Kinabalu grsold to SGX-listed GSH Corporation for US$275.7 million (or US$288,000 / key).

Kulkarni added, “We expect the balance of 2014 to equal or come close last year’s level in terms of transactional activity. Japan has already seen significant investment volume and will undoubtedly improve further and lead the pack, due to strong corporate demand and greater investor optimism arising from Abe’s economic reforms. Lower hotel transaction volume is expected for Singapore this year compared to last year, at least in the organized institutional side. However with the change in norms on the shop houses those that have approved hotel licenses will see high guest demand.

Mainland China in the first half of this year has seen investments of over US$1.5 billion. This obviously shows significant confidence in the markets and their potential, and also indicative of the fact that assets may be trading at below par and there is an eventual upside. However given the current trading performances in the key Chinese markets and also the relative slowdown of the economy the forecast in terms of investments is that these volumes will taper.

Some of those that gain would be India as it will see a significant rise due to the change in approach to debt service and banking norms forcing asset restructuring companies to offload some of their stocks. This in addition with the positive way in terms of the political climate provides India with a significant opportunity to attract a significant share of the regional investments.”

Thailand, Indonesia, and to some extent, Philippines, Sri Lanka could see more exciting times ahead with some major transactions to be closed. Emerging countries such as Myanmar and Cambodia have seen some renewed interest and could become viable investment destinations.”

There were a few hotel portfolio transactions in 1H 2014, especially in Japan. Anabuki Kosan acquired 9 three-star and budget Comfort Hotels for US$58.4 million from Taisei Yuraku Real Estate Company, while Hoshino REIT acquired 21 Chisun Inn hotels from Lone Star for US$136.9 million. India-based DLF Global Hospitality had sold its Amanresort chain of 27 luxury hotels to Adrian Zecha and Peak Hotels for US$358 million

Cushman & Wakefield studied the hotel investment transactions in the past 18 months, covering gateway cities in Asia Pacific. The most expensive hotel investment market in terms of value per key in US$ is Hong Kong. The Chinese territory saw the Mercer by Kosmopolitan transacted at US$1.36 million. Singapore is ranked second at US$1.24 million, having seen the sale of the 305-room Westin Marina Bay to Daisho Group at US$369 million last December.  Third on the list is Tokyo at US$846,000 arising from the Yaesu Fujiya Hotel which would be redeveloped into an office building.

Kulkarni added, “Hotel assets in Singapore and Hong Kong have high selling price per room due to the high earnings multiples and the potential for capital appreciation ahead. Buyer competition for prime institutional quality assets in these two cities remain intense, and there is a shortage of such assets for sale. For Singapore market, it would be ideal to hold if your assets are of prime quality as there is some room for additional asset appreciation. In Hong Kong, smaller sized assets are highly sought after, and can be repositioned with higher upside in rates and value.”

To see the full version of this release, click here: http://photos.prnasia.com/prnk/20140821/8521404706-a

About Cushman & Wakefield
Cushman & Wakefield is the world’s largest privately-held commercial real estate services firm. The company advises and represents clients on all aspects of property occupancy and investment, and has established a preeminent position in the world’s major markets, as evidenced by its frequent involvement in many of the most significant property leases, sales and assignments. Founded in 1917, it has 250 offices in 60 countries, employing more than 16,000 professionals. It offers a complete range of services for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, corporate services, property management, facilities management, project management, consulting and appraisal. The firm has more than $4 billion in assets under management globally. A recognized leader in local and global real estate research, the firm publishes its market information and studies online at www.cushmanwakefield.com/knowledge. In Greater China, Cushman & Wakefield maintains seven market-leading offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Hong Kong and Taipei. More information is available at www.cushmanwakefield.com.

Policymakers Warned of Persistent Risks as Accountancy Bodies Publish Five-year ‘Health Check’ of the Global Economic Recovery

HONG KONG, Aug. 21, 2014 /PRNewswire/ — Threats to long term economic stability remain as countries recover from the global economic crisis, according to a five year review of finance professionals’ economic insights.

Any recovery may also be limited to just a few “islands of financial stability”, report author Manos Schizas, Senior Economic Analyst at ACCA (the Association of Chartered Certified Accountants), has warned.

This is one of a number of worrying conclusions, based on a five year review of the ACCA/IMA (Institute of Management Accountants) Global Economic Conditions Survey, the largest economic survey of accounting professionals in the world.

The two bodies claim that the financial crisis and global recession have now fragmented into multiple unresolved issues – including damaged bank and government balance sheets, unconventional economic policies, political polarisation and geopolitical tensions. These are, by and, large, still present five years on, despite a growing ‘recovery consensus.’

In particular, the review highlights how, since mid-2012, business confidence gains have been much stronger in the financial sector than among the world’s SMEs and large corporates. While conceding the benefits of stronger banks on business investment, it warns of a growing imbalance fuelled primarily by central banks.

Manos Schizas said, “A recovery which is confined to the financial sector is not sustainable and policymakers need to start asking hard questions about what’s really underlying this in terms of consumer spending, business investment and leverage.”

The two bodies have also called on policymakers to take stock of the impact of unconventional monetary policy by OECD countries – particularly the unintended spill-overs into emerging markets.

“Emerging markets in Asia and Africa have had to contend with damaging flows of ‘hot money’ as a result of polices over which they had no choice. Institutionally, they are also much worse equipped to deal with the fallout than the countries that set the flows in motion,” said Raef Lawson, Ph.D., CMA, CPA, IMA vice president of research and policy.

The report, compiled from data created by 40,000 responses over five years, also raises questions about whether inflation really is dead at the global level, noting that it never really fell in Africa and the Middle East, while in Asia-Pacific input prices have rebounded since late 2012. Even the Chinese mainland, which has driven much of the global fall in inflation, saw a rebound from mid-2013 onwards.

Two of the world’s major economies – the EU and China – have driven much of the uncertainty over the past four years, but the ACCA/IMA heath-check is cautiously optimistic.

In the EU, the report finds that, despite mounting government debt, financial contagion has been contained, much of the missing institutional framework in the Eurozone is being built and the banking sector is on the mend. In China, despite repeated ‘doomsday’ warnings, slowing growth has so far remained manageable. However, the country is slowing down and shifting from an investment-driven to a consumption-driven economy, which will present a significant longer-term challenge for Chinese policymakers, and for countries which have tied their economic growth to commodity exports or direct Chinese demand.

The ‘health check’ of the recovery has shown that businesses around the world have been holding back on long-overdue investment for years, while austerity-hit public sectors have also often sacrificed public investment in order to maintain government consumption levels. The result has been a significant loss of productivity which will take years to reverse. ACCA and IMA believe, however, that a rebound in investment has already begun in 2013 and will be the biggest economic story of the next year, shaping industries for years to come. Access to finance has recovered consistently in most regions, businesses are increasingly seeking growth capital and it is mostly structural, rather than cyclical, factor that are holding up business financing.

Manos Schizas said, “Finance professionals are at the heart of business globally and have front-row seats to the recovery. Over the last five years they have given us accurate and timely indications of its direction of travel.”

“Our five year review demonstrates that policy makers and business leaders around the world must overcome numerous challenges if they are to secure a sustained economic recovery. Fortunately, both businesses and the public sector can continue to rely on finance professionals to help steer them through these challenges.”

Notes to Editors

  1. ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
  2. We support our 170,000 members and 436,000 students in 180 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of 91 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.  
  3. As the first global accountancy body entering into China, ACCA now has over 23,000 members and 48,000 students, with 8 offices in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Shenyang, Hong Kong SAR, and Macau SAR.
  4. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accounting professionals bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.
  5. For more information, please visit:
    www.accaglobal.com | www.facebook.com/ACCA.HongKong

Media and entertainment CFOs shift their primary focus from cost-cutting to growth, as economic confidence improves

— Concerns over economic uncertainty drops significantly for the first time in six years among CFOs of the largest media and entertainment companies

— Digital presents best opportunities for growth, and data analytics will provide insights to achieve strategies

— The US continues to be the most attractive market for investment, but emerging markets present opportunities for growth

NEW YORK, Aug. 11, 2014 /PRNewswire/ — The media and entertainment industry (M&E) has moved past the economic uncertainty of the global recession and shifted their primary focus from cost-cutting to growth, according to EY’s survey of CFOs of leading global M&E companies. The report, It’s Showtime! Digital drives the agenda, data delivers the insights (www.ey.com/ME_CFOstudy), which surveyed 50 large global M&E companies, shows CFOs are no longer worried about the global recession and are well-positioned to grow their companies through capitalizing on digital opportunities and through investments in technology, digital talent and infrastructure, as well as acquisitions and other deals. Only 26% of senior executives surveyed said global economic uncertainty would be a challenge during the next three years, compared to 62% two years ago, showing a dramatic decrease in concern over the economy.

John Nendick, Global Media & Entertainment Leader at EY, says:

“The CFOs told us in no uncertain terms that the economy is no longer an obstacle and now is the time for media and entertainment companies to invest in growth and focus on building their businesses. The industry is now poised to deliver on the promises it has been making the past several years but has been unable to achieve because of the economy. The CFOs recognize the recession is over and it’s showtime.”

Despite the opportunities for growth, the industry still faces many challenges. A majority of CFOs identified the greatest obstacles for the industry during the next three years as technology and platform disintermediation (64%), and an inability to persuade consumers to pay fair value for content (58%). Still others identified structural and regulatory uncertainty (42%) and reductions/reallocations of marketing budgets (26%) as major challenges for the future.

CFOs are positioning for growth and they see data analytics as the means to achieve it. They are placing significant emphasis on data to improve decision-making, systems and processes. But much work remains to be done. While 59% of CFOs feel their companies successfully use data to respond to and upsell existing customers, only 33% said their companies do a good job of using data to generate new business. And while only 39% of CFOs believe their organization is good at sharing data, 58% indicated that sharing data between business units would improve their organization’s overall effectiveness. 

Conversely, as data analytics become more essential to business operations, growing concerns over effectiveness and data overload also increase. The industry expects its data storage to increase from 1,100 exabytes of available data in 2010 to 8,000 exabytes by 2015. CFOs expressed concern over the increasing difficulty of identifying any meaningful insight within this massively expanding amount of data. 

Other key findings of the survey include:

  • Top priorities for the year ahead are the evolution of digital and online distribution (74%), cost reduction and business efficiencies (34%), creatively differentiating content (32%), extending brands globally (32%) and growth in new market segments (30%).
  • Emerging markets are no longer the top geographic focus for growth; 72% of M&E companies indicated their focus is on existing/core markets.
  • Seventy-two percent chose interactive media businesses as being best positioned to evolve and thrive in the future, followed by cable television networks and channels (42%), conglomerates (36%), film and television production (30%) and content and information services (30%).
  • The top actions identified to make companies more effective are attracting/retaining talent (58%), improved IT capabilities (42%), deeper understanding of market trends, customers and competitors (38%) and getting new products to market faster (30%).
  • CFOs prefer deals that give them either complete or majority ownership (61%) instead of making investments or having a minority interest (34%).
  • The average deal value during the first half of 2014 was US$939m, compared with US$220m in 2013 and US$157m in 2012, with cable operators driving the rise.

Howard Bass, EY’s Global Media & Entertainment Advisory Services Leader says:

“Recruiting and retaining talent is a significant concern for almost every CFO we surveyed. All agreed that talent, as well as establishing better collaboration between teams and different business units, are the most important factors for efficiently running their companies. The right talent means finding people who have the technical skills but are also digital savvy.”

About the survey
The survey was conducted among 50 CFOs of some of the largest global media and entertainment companies, headquartered in 10 countries and representing almost half a trillion dollars in media and entertainment revenue. The survey spanned industry sectors including filmed entertainment; broadcast and cable networks; music/radio; media conglomerates; advertising; internet and interactive media; publishing and information services; and cable/satellite distributors. Thirteen percent of companies surveyed have annual revenue greater than US$25 billion; 9%, US$10-$25 billion; 17%, US$5-$9.9 billion; 30%, US$1-$4.9 billion; 13%, US$500-$999 million; and 18%, less than US$500 million.

About EY’s Global Media & Entertainment Center
EY’s Global Media & Entertainment Center brings together a high-performance, worldwide team of media and entertainment professionals with deep technical experience in providing assurance, tax, transaction and advisory services to the industry’s leaders. Our network of professionals collaborate and share knowledge around the world, to provide exceptional client service and leverage our leading market share position to provide you with actionable information, quickly and reliably.

About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

Contact:

Steve Honig

Katherine Vogt

The Honig Company, LLC

EY Global Media Relations

+1-818-986-4300

+1-973-738-0264

press@honigllc.com

Katherine.Vogt@ey.com

Mobile Media Revenue to Approach $380 Billion by 2018 says Strategy Analytics

BOSTON, Aug. 5, 2014 /PRNewswire/ — Strategy Analytics’ forecast, Global Mobile Media Forecast: 2001-2018, predicts spending on consumer mobile media services consumed via the handset (which excludes tablet spend) including handset browsing, mobile applications, mobile games, mobile music, mobile video, mobile TV, ringtones, wallpapers and alerts – will rise from just above $236 Billion in 2013 to approach $380 Billion by 2018. Mobile operators will remain the main beneficiaries with spending on mobile data accounting for over $254 Billion, or 67.3 percent, of total mobile media revenue by 2018. Strong mobile advertising revenue growth will eclipse consumer spend on premium content, rising at just below 20% CAGR over the next five years.

Mobile Media Users by Application

Mobile Media Users by Application

Photo – http://photos.prnewswire.com/prnh/20140804/133001
Logo – http://photos.prnewswire.com/prnh/20130207/NE56457LOGO-b

Click here for the report:  http://bit.ly/1smKOvn

In advanced mobile media regions, like North America and Western Europe, demand for web browsing, games, apps and social media services will continue to drive mobile data adoption, enabled by the growing installed base of media-centric smartphones.  Nitesh Patel, Director of the Wireless Media Strategies (WMS) research program noted, “Across all regions consumer appetite for browsing the internet, social media, apps, games and consuming rich media content like video and music on their mobile phones shows no sign of abating. However, we expect less mature mobile markets, where a large portion of users have basic or feature phones and remain served by 2G networks, to exhibit the strongest growth in mobile media revenue. Therefore, in these markets the challenge remains driving mobile media growth through casual data tariffs or service orientated pricing, particularly as low priced smartphones become increasingly available. “

Overall, mobile advertising will become an increasingly important revenue stream, more than doubling to approach $41 Billion by 2018, and accounting for nearly 11% percent of mobile media revenue.  

David MacQueen, Executive Director of Apps and Media at Strategy Analytics added, “Mobile is becoming a core part of the digital advertising mix, accounting for around 14% of digital ad revenue in 2013. Advertiser spending on mobile phones, mainly smartphones, will continue to catch up with consumer mobile media usage as the growing momentum behind programmatic buying simplifies ad-buying within mobile media. Importantly, as more brands and retailers optimize the mobile commerce experience an increasing proportion of mobile users will use their phone to make purchases, enhancing the benefit of mobile advertising.”

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com 

European Contact: Nitesh Patel, +44(0) 1908 423 621, npatel@strategyanalytics.com
US Contact: David Kerr, +1 617 614 0720, dkerr@strategyanalytics.com