Sydney – According to PricewaterhouseCoopers in its annual Australian Media and Entertainment Outlook, advertising revenue will continue to contract while new business models will develop around consumer revenue, fueled by structural change in the Australian media and entertainment sectors. While a broader economic recovery is on the cards, and advertising dollars continue to migrate from traditional media to online, “there’s unlikely to be a bounce in advertising revenues that normally appears after a cyclical downturn,”David Wiadrowksi, PwC lead partner for technology, information, communications and entertainment, said. As a result consumer spending on media and entertainment products and services here will grow 5.5% over the next five years from US$11.6 billion in 2009 to $14.8 billion in 2013, while ad spend will increase just 1.7% to $10.7 billion in 2013. In total the sector will be worth $25 billion in five years, the firm said. Leading the growth are the internet, pay TV and interactive games sectors with compound annual growth rates of 10.4%, 9.1% and 7.6% over the next five years, to $5.6 billion, $3.53 billion and $1.8 billion dollars each of revenue respectively. Filmed entertainment is the only other part of the sector to show growth in the next five years, increasing 4.9% to $3.15 billion, with online rental subscription and digital downloads to grow substantially. Growth overall will be driven by initiatives like the roll-out of the federal government’s planned $35.7 billion National Broadband Network and Web-enabled mobile phones as a primary distribution platform for the entertainment and media of the future, industry developments which PwC has dubbed “the game changers.” “Consumers are going to be the growth engine of future. Entertainment and media businesses must adjust their business models so they are not left behind. A number of developments are radically reshaping the entertainment and media industry and the incumbents need to be ready rather than defensive,”the report said. Traditional media’s growth will be much smaller with out of home advertising, free to air television, radio and newspapers all showing declines in compound annual growth rate over the next five years.