In one of the most extensive reviews of the global entertainment and media (E&M) market to date, management consultants PricewaterhouseCoopers are predicting that spending on all forms of recorded music - from physical formats through to digital distribution on mobile phones - will fall from $33.4bn (?17.1bn) in 2007 to $32.5bn (?16.6bn) in 2012, representing a 0.6% compound annual decline over the next four years.

The news comes one day after figures from the IFPI showed that worldwide music sales ...