13 June 2014: Why TV is "the place to be" for the next five years, what the digital mindset really means and other things PricewaterhouseCoopers charts in its new Global entertainment and media outlook 2014-2018 report, which also puts China, India and Indonesia on its global growth watchlist.US$8.7 billionChina's forecast TV advertising revenues in 2018, according to PricewaterhouseCoopers' Global entertainment and media outlook 2014-2018. China's TV advertising revenues reached US$6.23 billion in 2013, terrestrial TV accounted for 96% of the revenues and multichannel for 4%. The TV advertising market's growth suffered a slight slowdown in 2013: annual growth in terrestrial revenues fell from 6.15% in 2012 to 5.75% in 2013. PwC said it "nevertheless still expects steady annual growth in the core TV advertising sector": total TV advertising revenues will rise from US$6.7 billion in 2014 to US$8.7 billion in 2018, a CAGR of 7%.161 millionThe number of homes in India taking pay-TV services in 2018. PwC says this will support high revenue growth of 13.9% a year on average, with subscription revenues reaching US$12.9 billion in 2018. The new data shows electronic home video OTT/streaming revenue growing rapidly to reach US$99 million by 2018, a CAGR of 35.7% over the forecast period. Electronic video through-TV-subscription revenue is also growing and will be worth US$18 million by 2018, up from US$10 million in 2013.US$800 millionIndonesia's forecast pay-TV subscription revenue in 2018. PwC says the country will have 5.9 million pay-TV subscribers in 2018, up from 2013's total 3.1 million. CAGR growth over the five-year period is 13.6%. 2018's 5.9 million represents a 12.1% penetration rate of television households, a "significant increase from 7.1% in 2013 and just 2.2% in 2009". PwC's market drivers are higher disposable incomes and a growing middle class, significant investment by leading players in sales, distribution and content, and new entrants maintaining competition. IPTV subscribers, meanwhile, will grow 44.1% (CAGR) over five years to reach 400,000 by the end of 2018. 69%The share of physical home video revenue of Taiwan's total filmed entertainment revenue in 2018. Physical home video revenue will be US$847 million in 2018, down 2.9% from US$984 million in 2013. Electronic home video will show steady gains, with revenue rising from US$35 million in 2013 to US$84 million in 2018. This will all come through TV subscription. Taiwan's OTT/streaming sector is, for now, non-existent. Taiwan's total filmed entertainment sector will be worth US$1.23 billion by 2018, down from US$1.28 billion in 2013. TV formats in ChinaWith more 60 foreign TV formats imported, 2013 was the year of "foreign TV formats" in China. PricewaterhouseCoopers' new Global entertainment and media outlook 2014-2018 says Chinese audiences have "warmly embraced" local versions of international formats such as China's Got Talent and The Voice of China along with formats from the Asia region such as South Korea's I am a Singer and Where Are We Going, Dad?"Foreign-format programmes fill the prime time of almost all the major satellite TV channels and are very popular among advertisers, which rely on high TV ratings," the report says, adding that season two of The Voice of China set a new advertising record of more than US$600,000 for a 150-second spot. The exclusive naming rights for I am a Singer 2014 was sold for US$38.7 million.Hunan TV's Where Are We Going, Dad? was "the dark horse of 2013", PwC says. The outdoor/travel show attracted unmatched TV ratings of 5.53% (source: CSM) and more than 13 million Weibos talking about it on Chinese social media. Pharmaceutical company, 999 Ganmaoling, achieved "an extraordinary advertising impact at a very low cost of US$5 million" in season one. The price tag for season two's exclusive naming rights this year was sold at 10 times that to dairy group Yili, setting a new record in China. "In addition, because of the programme's parenting theme, a wide variety of advertisers, from consumer package goods to automobiles, are eager to spend on it," PwC says, putting total ad revenue for the China version at more than US$16 million.There's a big "but" to China's format competition mania – tighter regulations. The new controls limit reality TV competition programmes a year to 10 across the country, and satellite broadcasters are restricted to airing only one foreign format TV programme annually, and only outside prime time (7.30pm-10pm).Product placement, meanwhile, is riding high. The 50-episode TV drama, Let's Marry, for example, embeds 49 pay-to-place products and has a sponsor list of 80 companies, PwC says. PwC quotes Let's Marry's director as saying that product placement is the "only way to guarantee revenue and quality at the moment". There are currently no specific regulations on product placement, but expectations are that the General Administration of Press, Publication, Radio, Film and Television will get to it sooner or later "as dissatisfaction grows among the Chinese audience".