Nick George, media and entertainment strategy partner at PwC, said: "Revenue growth is increasingly digitally driven, and having weathered probably the worst of the downturn, media companies will look to digital M&A to drive the top line."
"Private equity firms, who have been significant acquirers of media assets over the last few years, appear to be readying assets for sale.
"Further acquisitions should also be driven by technology change, in particular the embrace of digital by European media companies.
"Digital is impacting virtually every sub-sector of media, with even the most 'traditional' of segments such as books and magazines, now seeing strong digital impacts from e-readers and tablet devices.
Across Europe last year there were 110 media deals totalling $12bn, up 90% from the €6.3bn value recorded in 2009.
Deal values in the UK, however, were lower in 2010, at €1.99bn, than in 2009, at €2.65bn.
UK deals included BSkyB's $191m acquisition of Virgin Media Television, Time Warner's €145m acquisition of TV production Shed Media, and private equity company Doughty Hanson's €520m acquisition of Vue cinemas.
If News Corp succeeds with its bid to buy the 60.9% of BSkyB it does not own, 2011 will be a bumper year, with News Corp's bidding having started at £7.8bn.
The largest European transaction of 210 was Liberty Global's $4.8bn acquisition of a 57.7% stake in El Pais publisher Promotora de Informaciones SA (Prisa).
This article was first published on mediaweek.co.uk