Growth of Global Entertainment and Media

• The global entertainment and media sector is forecast to grow to $3.5 trillion by 2029.
• This growth is primarily driven by advertising, video games, and live events, despite economic headwinds.

Advertising Fuels Industry Expansion

The global entertainment and media (E&M) industry is expected to grow to an estimated $3.5 trillion by 2029, up from nearly $3 trillion in 2024. This growth is primarily driven by increases in advertising, live events, and video games. The PwC Global Entertainment & Media Outlook analyzed the industry’s prospects for the period of 2025-2029, forecasting a compound annual growth rate (CAGR) of 3.7%. This growth rate, while surpassing projected global economic growth, falls short of pre-pandemic highs, reflecting ongoing economic uncertainties and cautious consumer spending.

Growing competition and moderate consumer spending have slowed the growth of subscription-based services, particularly in developed markets. However, advertising is projected to be the key growth engine for the E&M sector, with a forecasted CAGR of 6.1%. This is roughly three times faster than the growth expected from consumer spending, which is projected to have a CAGR of just 2%. The fastest-growing revenue streams are all tied to advertising, including retail media, social and mobile on-stream video ads, and in-stream internet TV ads.

Digital formats, which made up 72% of total ad revenue in 2024, are expected to increase their share to 80% by 2029. New trends such as AI and hyper-personalization are anticipated to further boost this transition. Retail media and in-game advertising are also seeing dynamic growth. Connected TV (CTV) advertising is another area where AI is expected to influence revenue growth.

Revenues from internet TV ads are forecasted to reach $51 billion by 2029, which would account for about 45% of traditional TV advertising revenue. Connectivity remains the largest revenue category, projected to reach $1.3 trillion by 2029 with a CAGR of 2.8%, thanks mainly to mobile internet services. However, the robust growth in advertising suggests the revenue gap between connectivity and advertising will significantly narrow by 2029.

Offline Experiences and Gaming Market Flourish

Despite consumers spending an increasing amount of time online, a majority of their entertainment budgets are still spent on offline experiences. Non-digital formats accounted for 61% of all E&M revenue in 2024, a share that is expected to remain stable through 2029. Live events, such as concerts and cinema, are key drivers of this trend. While the market share of major US film studios has declined, global cinema revenue is still expected to grow from $33 billion in 2024 to $41.5 billion by 2029.

The global video game market continues to be a significant driver of E&M growth, surpassing both the film and music industries. The total revenue for the global video game market reached approximately $224 billion in 2024. With a projected CAGR of 5.7%, this figure could rise to nearly $300 billion by 2029.

Emerging Markets Lead Growth

The United States remains the world’s largest E&M market in terms of revenue, excluding connectivity. Its growth is projected at 3.8% through 2029, slightly below the 4.2% global average. China, the second-largest market, shows impressive growth of 6.1%, driven mainly by its internet advertising sector. However, the world’s fastest-growing local markets are in developing countries like India and Indonesia, where the CAGR exceeds 7.5%.

India’s remarkable growth is largely fueled by internet advertising, with a CAGR of 15.9%. This is boosted by increasing internet penetration, the rollout of 5G, and the popularity of social media and short video content. Overall, the report suggests that while economic uncertainties persist, the E&M sector can thrive by leveraging the power of advertising and AI to create more personalized and cost-effective content, thereby appealing to a broader consumer base.