Rebecca Zisser / Axios

Over the next five years, the annual global growth rate for the media and entertainment industry will be 4.2%, PriceWaterHouse Coopers estimates — slower that the predicted growth rate of global GDP. Revenue streams that have historically driven growth within the industry (like print advertising, music downloads and cinemas) are losing market share in the global economy as cheaper, more efficient digital mediums replace them, like digital advertising, music streaming and digital home video.

Why it matters: We're already starting to see the fundamental changes to advertising and movies play out in real time, with traditional media markets around the globe taking a hit:

  • Agencies report major losses, WPP — the world's biggest advertising agency and holding group — saw shares fall over 10% after it reported that ad spend for the remainder of the year is expected to drop due to political volatility in the U.K. and U.S. and economic volatility in key markets, like Russia, Brazil and China. Havas Group, another major ad agency, missed on Q2 earnings, blaming lowered ad spend from clients suffering from economic issues in emerging markets, like Brazil, Mexico, India and China. They also noted spending cuts in the consumer packaged goods (CPG) category — a big, industry-wide trend.
  • Traditional media continues to fall: Nine Entertainment Co., a major Australian TV network, posted a $160 million loss for the last fiscal year due mostly to a weak advertising market. (Worth noting: CBS announced it would acquire TEN on Monday.) On the movie front, box office revenue was down 70% this month compared to this time last year, as moviegoing in the U.S. continues to plateau.

Sound smart: The media and entertainment industry's biggest growth drivers — online video, video games, internet access and digital advertising — are growing rapidly, but not at a rate that's enough to support the major declines of traditional media, almost all of which were down year over year last quarter.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 18,187,396 — Total deaths: 691,352 — Total recoveries — 10,841,436Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 4,711,323 — Total deaths: 155,379 — Total recoveries: 1,513,446 — Total tests: 57,543,852Map.
  3. Politics: White House will require staff to undergo randomized coronavirus testing — Pelosi says Birx "enabled" Trump on misinformation.
  4. Sports: 13 members of St. Louis Cardinals test positive, prompting MLB to cancel Tigers series — Former FDA chief says MLB outbreaks should be warning sign for schools.
  5. 1 🎥 thing: "Tenet" may be the first major film to get a global pandemic release.

In photos: Thousands evacuated as Southern California fire grows

A plane makes a retardant drop on a ridge at the Apple Fire north of Banning in Riverside County, which "doubled in size" Saturday, per KTLA. Robert Gauthier / Los Angeles Times via Getty Images

A massive wildfire that prompted mandatory evacuations in Southern California over the weekend burned 26,450 acres and was 5% contained by Monday afternoon, the California Department of Forestry and Fire Protection said.

The big picture: As California remains an epicenter of the coronavirus pandemic in the U.S., some 15 separate fires are raging across the state. About 7,800 people were under evacuation orders from the Apple Fire, about 75 miles east of Los Angeles, as hundreds of firefighters battled the blaze. CalFire said Monday that a malfunction involving a "diesel-fueled vehicle emitting burning carbon from the exhaust system" started the Apple Fire.

Twitter faces FTC fine of up to $250 million over alleged privacy violations

Photo: Rafael Henrique/SOPA Images/LightRocket

The Federal Trade Commission has accused Twitter of using phone numbers and emails from its users to make targeted ads between 2013 and 2019, Twitter said in an SEC filing published Monday.

Why it matters: Twitter estimates that the FTC's draft complaint, which was sent a few days after its Q2 earnings report, could cost the company between $150 million and $250 million. The complaint is unrelated to the recent Twitter hack involving a bitcoin scam.