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Future of the Global Entertainment and Media Industry

The global entertainment and media sector is poised for significant growth, with revenues predicted to soar to $3.5 trillion by 2029, according to the latest report from PwC. This remarkable expansion is primarily fueled by rising advertising rates and innovations such as artificial intelligence that enhance consumer engagement and advertising effectiveness.

In 2024, the industry was on the brink of reaching the $3 trillion mark, as various facets including live events, music, movies, and video games increasingly dominate consumer spending. Notably, it is expected that advertisement spending will grow three times faster than consumer spending, suggesting a shift in strategies within media firms nationwide.

The Advertising Revolution

The advertising landscape is undergoing substantial transformation, propelled by AI technologies that drive hyper-personalization in marketing approaches. This shift is essential as global consumer spending on entertainment is forecasted to show a modest growth rate of just 2%, contrasting with the 6.1% anticipated for advertising expenses. The growth in advertising revenue is also identified in specific sectors, such as retail, where in-store advertising is projected to rise significantly.

According to Bart Spiegel, Global Entertainment and Media Lead at PwC US, “The entertainment and media sector must adapt its approaches due to ongoing economic uncertainties and increasingly competitive environments.” He emphasizes the need for agility in order to remain at the forefront of technological innovation, with a focus on creativity and personalized content as key priorities.

Digital vs. Non-Digital Spending

Despite a massive online presence, consumers are still allocating a significant portion of their entertainment budgets to non-digital experiences. As of 2024, offline entertainment formats, including live music and cinema, accounted for 61% of consumer spending in this sector. The movie revenues are expected to increase from $33 billion in 2024 to approximately $42 billion by 2029, indicating a robust market share for locally produced content.

In stark contrast, the video game industry continues to emerge as a powerhouse within the entertainment landscape, with revenues projected to skyrocket from $224 billion in 2024 to nearly $300 billion by 2029. This positions gaming as a far superior revenue generator when compared to both the film and music industries combined.

Uneven Global Growth

On a macroeconomic front, the U.S. remains the largest market for entertainment and media, with a steady growth forecast of 3.8% through 2029. However, emerging markets such as China, India, and Indonesia are expected to surpass this growth rate, largely propelled by internet advertising and 5G connectivity innovations. Among these, India is predicted to witness robust growth driven predominantly by enhanced internet penetration and the rise of social media platforms.

Wilson Chow, PwC's Global TMT Leader, points out, “Competitive pressures and economic uncertainty are contributing to stagnant consumer spending growth. Companies in the entertainment and media sectors need to leverage connected ecosystems and harness the potential of advertising and AI for cost-effective content creation and audience engagement.”

Looking Ahead

The Global Entertainment and Media Report from PwC underscores essential trends as we move towards 2029. Companies must embrace technological advancements and adapt their business models to stay relevant in a rapidly evolving market landscape. The convergence of AI and personalized advertising will be fundamental in optimizing revenue channels while simultaneously enhancing consumer experience in the dynamic realm of entertainment and media.