The global entertainment and media industry will be worth $1.8 trillion (£977bn) by 2010, says a report.
Digital technology is expected to prompt a boom at the box office
The spread of broadband internet and wireless technology will be the driving forces behind the growth, according to accounting firm PricewaterhouseCoopers.
Spending on entertainment is expected to reach $1.2bn (£652m) in 2010, compared to $866m (£470m) last year.
That figure includes everything from books and trips to the cinema, to TV and internet subscriptions in the home.
The report says the film industry will benefit from a rebound in box office sales and the introduction of high definition DVDs.
Sales of ringtones will grow as CD sales decline, predicts the report
Cinemas are expected to benefit from upgrades to new digital equipment, which will make it cheaper to get films into theatres and, it is hoped, will bring back customers.
"You're looking at about 10,000 screens converted by the end of the decade in the US," said Michael Kelley from PricewaterhouseCoopers (PWC). "Then we will start to see an uptick in that impact."
The recording industry can expect to see sales grow by 5.2% over the next five years, says the report.
Downloads and ring-tones will become more important as sales of physical CDs decline.
Piracy is also expected to drop off as music and films become easily available online.
Video games will become increasingly important to the entertainment industry as the next generation of games consoles takes hold, the report says.
PWC analysts expect games to be the second-fastest growth area in the entertainment industry over the next five years.
Consumers are expected to spend $46m (£24m) on games in 2010 - up 11.4% from 2005.
The report says the internet will retain its position as the entertainment industry's fastest growing sector over the next five years.
By 2010 consumers around the world will be paying $214m (£116m) for internet access - with broadband taking a firm hold in Europe and the US, while dial-up connections penetrate Asia Pacific and Latin America.
The report's headline figure, which says the global entertainment industry will be worth $1.8 trillion in five years time, gives the media market a revenue equal to the GDP of the UK.
However, the total includes spending on advertising, sports, casinos and theme parks as well as traditional media such as film and music.
PWC analysts say entertainment spending will grow fastest in the Asia Pacific region, with double-digit increases on the internet, television and casinos.
The US will continue to be the world's largest entertainment market but, in Asia, China will overtake Japan by 2009.