*connectedthinking
how to stay in
touch with tomorrow’s
consumer.
*
Trends in the Netherlands 2007-2011
Entertainment&MediaOutlooktowards2011
Special pre-launch edition
how to stay in
touch with tomorrow’s
consumer.
*
Entertainment & Media Outlook towards 2011
Trends in the Netherlands 2007–2011
Dutch Entertainment & Media Outlook towards 2011
Summary
The entertainment and media industry in the Netherlands
expanded by 4.4 percent in 2006, up from the 3.1 percent
rise in 2005 and the fastest increase during the past five
years. End-user spending, which comprised 76 percent
of the total market in 2006, rose by 4.0 percent, up from
the 3.4 percent rise in 2005. Advertising increased by
5.6 percent, its largest gain during the past five years and
well above the 2.1 percent growth in 2005. The rebound
in the economy in the Netherlands in 2006 contributed
to the jump in advertising.
Fueling the improvement was a reversal in filmed
entertainment, which rose by 3.5 percent in 2006
after falling by 11.1 percent in 2005. Although recorded
music declined by 6.1 percent, that drop was a
10.4 percentage point improvement compared with the

spending offset a rebound in newspaper advertising
leading to a 1.1 percent dip in the newspaper market.
That drop, however, was substantially less than the
2.1 percent decrease in 2005.
The entertainment and media (E&M) market as a whole
in 2006 benefited from a noticeably stronger economy.
We expect economic growth to remain relatively
healthy during the next five years, which should support
continued E&M expansion. We expect overall growth
to average 4.6 percent compounded annually during
the next five years, comparable to the increase in 2006.
Spending in 2011 will total an estimated ` 14.8 billion,
up from`11.9 billion in 2006.
We do not expect any segment to average double-digit
growth during the next five years. Video games, which
rose at a 26.9 percent compound annual rate during the
past five years, will drop to an 8.0 percent compound
Entertainment and Media Spending by Component in the Netherlands (`Millions)
Category 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2007-2011
CAGR*
Advertising
2,753 2,622 2,672 2,727 2,880 3,016 3,170 3,307 3,456 3,583
% Change
–2.8 –4.8 1.9 2.1 5.6 4.7 5.1 4.3 4.5 3.7 4.5
End-User Spending 7,644 7,921 8,349 8,634 8,977 9,403 9,873 10,318 10,820 11,241
% Change
6.1 3.6 5.4 3.4 4.0 4.7 5.0 4.5 4.9 3.9 4.6
Total 10,397 10,543 11,021 11,361 11,857 12,419 13,043 13,625 14,276 14,824
% Change 3.6 1.4 4.5 3.1 4.4 4.7 5.0 4.5 4.8 3.8 4.6
*CAGR = Compound Annual Growth Rate. Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates

rental market, leading to a projected 3.2 percent rate
compound growth for filmed entertainment. We expect
radio to expand at a 2.4 percent rate compounded
annually, helped by a rise in government contributions
to public broadcasters. Magazines will lead the publishing
segments with a 2.8 percent compound annual increase,
while book publishing and newspaper publishing will
grow by 1.9 percent and 1.3 percent, respectively. We
do not project any segment to decline during the next
five years. During the past five years, three segments
– recorded music, newspaper and magazine publishing –
declined.
Dutch Entertainment & Media Outlook towards 2011
Entertainment and Media Spending in the Netherlands (` Millions)
Segment 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2007-2011
CAGR
Filmed Entertainment
648 639 642 571 591 606 619 636 662 693
% Change
39.1 –1.4 0.5 –11.1 3.5 2.5 2.1 2.7 4.1 4.7 3.2
Television 2,300 2,366 2,585 2,771 2,971 3,161 3,384 3,612 3,873 4,123
% Change
5.0 2.9 9.3 7.2 7.2 6.4 7.1 6.7 7.2 6.5 6.8
Recorded Music 467 444 411 343 322 320 337 359 391 423
% Change
–6.2 –4.9 –7.4 –16.5 –6.1 –0.6 5.3 6.5 8.9 8.2 5.6
Radio 435 458 459 460 462 473 485 497 509 521
% Change
2.8 5.3 0.2 0.2 0.4 2.4 2.5 2.5 2.4 2.4 2.4
Out-of-Home Advertising 143 136 138 141 148 156 165 175 186 198

industry. The rebound in real GDP in 2004 contributed to
the improvement in industry growth and the slowdown in
economic growth in 2005 was a factor contributing to the
slowdown in entertainment and media growth. In 2006,
real GDP rose by 2.9 percent, by far its best performance
during the past five years. While we do not expect a
further meaningful acceleration in growth, we do expect
increases to be sustained during the next three years and
project 3.0 percent advances during 2007 and 2008 and
a 2.8 percent rise in 2009. Thereafter, the economy will
lose some momentum, a typical pattern in the fifth year
of a recovery, and project growth to moderate somewhat.
Real GDP growth for the 2007–2011 periods will average
2.8 percent on a compound annual basis, comparable
to 2006 but a noticeable improvement compared with
2002–2005. In nominal terms the economy rose by
4.8 percent in 2006, also a significant pickup. We expect
nominal GDP growth to continue to average 4.8 percent
through 2011.
The entertainment and media industry is cyclical. This
means that during weak economic periods many markets
in the E&M industry start to decline as companies look
for ways to reduce costs and advertising is often one of
the first expense items to be cut. During expansionary
periods the opposite happens, as most markets in the
E&M industry start to grow since companies start to
focus on generating growth and advertising is one of
main tools used to boost sales. Similarly for consumer
spending, the economy affects disposable income, which
in turn affects the resources available for entertainment

Nominal GDP Growth 3.9 2.4 2.6 2.9 4.8 4.9 5.0 4.9 4.6 4.4 4.8
Sources: Statistics Netherlands, PricewaterhouseCoopers LLP,
Wilkofsky Gruen Associates
Source: Statistics Netherlands, PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates
Dutch Entertainment & Media Outlook towards 2011
Advertising
Advertising recorded its strongest performance during the
past five years with a 5.6 percent increase in 2006, nearly
three times the average growth during 2004–2005 and a
marked improvement compared with declines during
2002–2003. Each segment rose in 2006 with notable
turnarounds in newspapers and magazines. Magazine
advertising increased 6.3 percent, except for the Internet
the fastest growing category in 2006. It also marked a 6.5
percentage point swing from the 0.2 percent decline in
2005. Newspaper advertising increased 0.6 percent
compared with a 1.8 percent decline in 2005, repre
-
senting a 2.4 percentage point swing. Television, radio,
and out-of-home advertising also grew faster in 2006
than in 2005 and Internet advertising continued to soar,
rising by 41.2 percent.
Because we do not expect the acceleration in economic
growth that occurred in 2006 to be replicated during the
next five years, we do not expect the 2006 increase in
advertising growth to be matched. Nevertheless, with
the economy expected to remain healthy during the next
five years, we project advertising in the Netherlands to
be relatively strong as well. The Internet, excluding key
word and recruitment advertising, will pass out-of-home

% Change
–11.8 –4.2 –3.8 –1.8 0.6 1.7 2.1 2.3 2.4 2.6 2.2
Total 2,753 2,622 2,672 2,727 2,880 3,016 3,170 3,307 3,456 3,583
% Change –2.8 –4.8 1.9 2.1 5.6 4.7 5.1 4.3 4.5 3.7 4.5
Sources: Interactive Advertising Bureau Netherlands, PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates
Dutch Entertainment & Media Outlook towards 2011
Magazine advertising will grow at a 4.7 percent
compound annual rate, buoyed by new consumer
launches and improved growth in the highly cyclical
trade magazine category. In the television market,
inflows associated with major sporting events such as
the FIFA World Cup and Olympics boost revenues in
even-numbered years. On quadrennial-to-quadrennial
basis (comparing 2007–2010 with 2003–2006), growth will
improve to 4.4 percent compared 2.2 percent during the
previous quadrennial. Actual growth during the next five
years will average 4.1 percent on a compound annual
basis. Radio and newspapers will be the slowest-growing
segments with compound annual increases of 3.3 percent
and 2.2 percent, respectively.
We project the overall advertising market to expand
at a 4.5 percent compound annual rate, a substantial
improvement compared with the past five years when
spending grew at a percent rate. Advertising will rise
to an estimated ` 3.6 billion in 2011 from ` 2.9 billion
in 2006.
End-User Spending
End-user spending, consisting of spending by consumers
and other end users on products and services produced
by the entertainment and media industry, rose 4.0 percent

5.4 percent form double-digit increases during the prior
four years. With 80 percent of Internet households now
on broadband, migration to broadband is slowing.
A strong box office performance led to a rebound in
filmed entertainment. Books and magazine rose by less
than 1 percent and recorded music, radio, newspapers,
and theme parks declined.
Sources: Statistics Netherlands, PricewaterhouseCoopers LLP,
Wilkofsky Gruen Associates
Dutch Entertainment & Media Outlook towards 2011
Sources: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates
End-User Spending (` Millions)
Segment 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2007-2011

CAGR
Filmed Entertainment
648 639 642 571 591 606 619 636 662 693
% Change 39.1 –1.4 0.5 –11.1 3.5 2.5 2.1 2.7 4.1 4.7 3.2
Television 1,510 1,621 1,765 1,921 2,071 2,236 2,409 2,597 2,803 3,023
% Change
4.8 7.4 8.9 8.8 7.8 8.0 7.7 7.8 7.9 7.8 7.9
Recorded Music 467 444 411 343 322 320 337 359 391 423
% Change
–6.2 –4.9 –7.4 –16.5 –6.1 –0.6 5.3 6.5 8.9 8.2 5.6
Radio 195 198 194 190 182 183 185 187 189 191
% Change
1.0 1.5 –2.0 –2.1 –4.2 0.5 1.1 1.1 1.1 1.1 1.0
Internet 988 1,097 1,276 1,454 1,533 1,648 1,754 1,852 1,925 1,993
% Change
15.4 11.0 16.3 13.9 5.4 7.5 6.4 5.6 3.9 3.5 5.4

expand at a 4.6 percent compound annual rate, rising
to ` 11.2 billion in 2011 from ` 9 billion in 2006.
The Netherlands’
share of Western
European Spending
The Netherlands in 2006 accounted for 4.0 percent of total
entertainment and media spending in Western Europe,
which is comparable to its share of population and GDP.
The share for theme parks was well above average at
8.0 percent as the Netherlands has one of the largest
parks in Europe, De Efteling, which attracts visitors from
other countries. Magazines at 5.1 percent had the next-
largest share followed by video games at 4.9 percent
and television at 4.5 percent. The Netherlands has a
large magazine market and its high broadband
penetration is reflected in the vibrant online video game
market. The Netherlands also has a competitive television
distribution market which leads to high subscription
household penetration.
The Netherlands’ share of Western European
entertainment and media spending has declined in recent
years, falling from 4.3 percent in 2002. We anticipate that
the Netherlands’ share will remain at 4.0 percent in 2007
and then dip to 3.9 percent during 2008
–2011. We look for
a substantial share declines for the Internet and video
games as the rest of the region closes the gap with the
Netherlands in broadband penetration. We also expect
share declines for theme parks and a small drop in book
publishing. The Netherlands is behind the rest of the region