China is expected to become Asia's largest market for media and entertainment in three years, surpassing Japan, with a wider access to broadband Internet and a rapid growth in the video game industry.

Analysts at Price-waterhouse Coopers estimate a double-digit increase in Internet, television distribution, video games, and casino and other regulated gaming in Asia, and that China will leap to the top of the market by 2009 with an annual growth of 18 percent.

"The spectacular growth in China is the big story amongst entertainment and media professionals both locally and internationally," said Marcel Fenez, Asia Pacific leader of PricewaterhouseCoopers' Entertainment & Media Practice.

The country's rapid growth will be fueled by rising spending via broadband Internet which is growing at 27.8 percent annually and a bigger video game industry expanding by 16.1 percent.

The firm estimated the number of broadband households in China will increase to 130 million by 2010 at an annual rate of 29.3 percent.

"Considering the large population base in China, there are still more than two thirds of Chinese households without broadband access at that time which present an enormous growth potential in Internet access and advertising spending," said Grace Tang, lead partner of PricewaterhouseCoopers' Entertainment & Media Practice in China.

This, coupled with new technologies which allows mobile users to download music, play video games and watch TV programs via cell phones, provides a huge lucrative opportunity for entertainment and media companies.

PWC forecasts the global entertainment and media industry at US$1.8 trillion in 2010 with an annual growth of 6.6 percent. Consumer spending on entertainment via online and wireless channels will soar to US$67 billion by 2010, up from the US$19 billion last year.

Editor: Wing