Global Entertainment and Media Revenue to Reach $3.5 Trillion by 2029 Driven by Advertising and Gaming
The global entertainment and media sector is on a significant growth trajectory, with revenues expected to soar to $3.5 trillion by 2029. According to the latest report from PwC, known as the Global Entertainment and Media Outlook 2025-29, the industry has almost approached $3 billion in 2024, primarily sustained by advertising, live events, and video gaming.
One of the most notable insights from the report is that advertising expenditure is forecasted to grow at a staggering 6.1% annually, significantly outpacing the 2% growth forecast for overall consumer spending in the E&M sector. This acceleration is expected to be greatly influenced by the transformative power of Artificial Intelligence (AI), which is set to change advertising models and promote hyper-personalization.
Despite the burgeoning demand for digital content, non-digital categories such as music, film, and live events still account for a substantial portion of revenue, making up approximately 61% of sector spending in 2024. The film industry’s revenue is projected to increase from $33 billion in 2024 to $42 billion by 2029, as an international audience increasingly spends on locally produced films.
The gaming sector remains a remarkable growth engine, with revenues expected to rise from $224 billion in 2024 to an impressive $300 billion by 2029, surpassing combined revenues of both the film and music industries. This rapid expansion underlines an ongoing shift towards gaming as a mainstream form of entertainment, particularly as younger audiences drive increased engagement.
Advertisers are identifying new opportunities within digital mediums that have historically shown rapid growth rates. For instance, local advertising is foreseen to grow at 15%, while video and mobile on-stream advertising are also anticipated to contribute significantly, with similar growth rates expected. By 2029, digital formats are expected to account for 80% of total advertising revenues, further highlighting the shift towards online and digital media.
AI's role in this landscape is crucial; it is predicted that the advent of hyper-personalized advertising could increase user engagement substantially. In 2020, connected TV advertising accounted for only 5.9% of traditional TV ad revenue but is projected to rise to 22% by 2024 and hit $51 billion—45% of total TV advertising—by 2029.
While connectivity remains a vital category, with projected revenues of $1.3 trillion in 2029, the advertising sector's growth means it could rival or even surpass traditional channels. Disconnects between consumer engagement online versus offline are evident, as consumers are still allocating significant portions of their entertainment budgets to offline experiences, such as concerts and cinema.
Interestingly, the share of the top five American studios in the global market has declined from over 60% pre-pandemic to around 51% in 2024, indicating a growing preference for locally produced content.
In summary, as we approach the end of the decade, the global entertainment and media landscape is poised for a dramatic transformation, underscored by the crucial roles both advertising and gaming play. The industry's ability to adapt and innovate in response to AI advancements and consumer demands will ultimately shape its future trajectory. Companies that leverage these opportunities by enhancing their advertising strategies and embracing new technologies will likely capture more market share in this dynamic environment.
The PwC report also notes the disparities in growth rates among different regions, with emerging markets, particularly India and Indonesia, showcasing growth rates exceeding 7.5%. With increasing internet penetration, expanding 5G networks, and growing social media engagement, these regions are set to redefine the global entertainment landscape in the years ahead.
Insights into Revenue Growth
One of the most notable insights from the report is that advertising expenditure is forecasted to grow at a staggering 6.1% annually, significantly outpacing the 2% growth forecast for overall consumer spending in the E&M sector. This acceleration is expected to be greatly influenced by the transformative power of Artificial Intelligence (AI), which is set to change advertising models and promote hyper-personalization.
Despite the burgeoning demand for digital content, non-digital categories such as music, film, and live events still account for a substantial portion of revenue, making up approximately 61% of sector spending in 2024. The film industry’s revenue is projected to increase from $33 billion in 2024 to $42 billion by 2029, as an international audience increasingly spends on locally produced films.
Gaming Industry Boom
The gaming sector remains a remarkable growth engine, with revenues expected to rise from $224 billion in 2024 to an impressive $300 billion by 2029, surpassing combined revenues of both the film and music industries. This rapid expansion underlines an ongoing shift towards gaming as a mainstream form of entertainment, particularly as younger audiences drive increased engagement.
The Advertising Advantage
Advertisers are identifying new opportunities within digital mediums that have historically shown rapid growth rates. For instance, local advertising is foreseen to grow at 15%, while video and mobile on-stream advertising are also anticipated to contribute significantly, with similar growth rates expected. By 2029, digital formats are expected to account for 80% of total advertising revenues, further highlighting the shift towards online and digital media.
AI's role in this landscape is crucial; it is predicted that the advent of hyper-personalized advertising could increase user engagement substantially. In 2020, connected TV advertising accounted for only 5.9% of traditional TV ad revenue but is projected to rise to 22% by 2024 and hit $51 billion—45% of total TV advertising—by 2029.
The Impact of Economic Factors
While connectivity remains a vital category, with projected revenues of $1.3 trillion in 2029, the advertising sector's growth means it could rival or even surpass traditional channels. Disconnects between consumer engagement online versus offline are evident, as consumers are still allocating significant portions of their entertainment budgets to offline experiences, such as concerts and cinema.
Interestingly, the share of the top five American studios in the global market has declined from over 60% pre-pandemic to around 51% in 2024, indicating a growing preference for locally produced content.
Future Outlook
In summary, as we approach the end of the decade, the global entertainment and media landscape is poised for a dramatic transformation, underscored by the crucial roles both advertising and gaming play. The industry's ability to adapt and innovate in response to AI advancements and consumer demands will ultimately shape its future trajectory. Companies that leverage these opportunities by enhancing their advertising strategies and embracing new technologies will likely capture more market share in this dynamic environment.
The PwC report also notes the disparities in growth rates among different regions, with emerging markets, particularly India and Indonesia, showcasing growth rates exceeding 7.5%. With increasing internet penetration, expanding 5G networks, and growing social media engagement, these regions are set to redefine the global entertainment landscape in the years ahead.
Topics Entertainment & Media）
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