#USA #New York #Video Games #Advertising Trends #Entertainment Industry

The Future of the Global Entertainment and Media Industry

As the world eagerly anticipates the evolution of the entertainment and media (EM) sector, projections show it is well on its way to reaching a staggering $3.5 trillion in revenue by 2029. This forecast, articulated in PwC’s Global Entertainment & Media Outlook 2025-29, highlights the accelerating growth driven primarily by advertising, live events, and the booming video game industry.

A Shift Towards Advertising

One of the most notable trends emerging from the outlook is the remarkable growth of advertising expenditures. As the economic landscape undergoes transformation, advertising is poised to outpace consumer spending on electronic media, with expectations of growing at a rate of 6.1% annually compared to the mere 2% rise seen in consumer spending. This surge is largely attributed to the integration of artificial intelligence (AI) into advertising models, marking a significant shift towards hyper-personalization and targeted marketing strategies.

According to Bart Spiegel, global leader for entertainment and media at PwC US, the EM sector must navigate through economic uncertainties while embracing technological innovations to enhance content delivery methods. AI is redefining how companies create and distribute content, presenting a tremendous opportunity to tailor experiences that resonate with consumers more intimately than ever before.

Revenues from Live Events and Non-Digital Formats

Despite the digital age, non-digital categories such as live music and cinema continue to dominate consumer spending, accounting for 61% of the sector’s revenue in 2024. It is predicted that global box office revenues will see substantial increases, surging from $33 billion in 2024 to $42 billion by 2029. This resurgence in cinema attendance is fueled by a growing appetite for locally produced films, with audiences gradually shifting away from mainstream Hollywood productions.

The Video Game Boom

The video game industry emerges as a powerhouse within the EM sector, expected to grow from $224 billion in 2024 to nearly $300 billion by 2029. This growth not only surpasses that of the film and music industries combined but also highlights the increasing consumer engagement in gaming as a primary form of entertainment. The synergy between gaming and advertising is also anticipated to strengthen, reflecting a larger trend in digital ad spend.

The Landscape of Global Markets

Market dynamics are varying across regions, with the United States expected to continue leading the EM market but with a predicted growth of only 3.8%, lagging behind the global average of 4.2%. In contrast, emerging markets like China are set to rise significantly, primarily through a surge in internet advertising, which boasts an impressive CAGR of 8.9%. Countries like India and Indonesia are projected to witness higher growth rates, due in large part to increasing internet penetration and evolving consumer preferences towards digital and mobile content.

Looking Ahead

In conclusion, the entertainment and media landscape is at a crossroads, driven by changing consumer spending patterns and rapid technological advancements. Companies operating in this space must remain adaptable, leveraging AI and interconnected ecosystems to harness new opportunities. Fostering a culture of innovation and embracing personalized content delivery will be crucial as businesses navigate through the complexities of consumer engagement in the coming decade. As the industry continues to expand and evolve, the insights from PwC’s outlook provide a profound glimpse into a dynamic future poised for transformation.