Expanded Revenue Projections in the Worldwide Media and Entertainment Sector, Reaching $3.5 Trillion by 2029
The global entertainment and media (E&M) industry is poised for significant growth, according to PwC's "Annual Global Entertainment & Media Outlook 2025-29". The industry is projected to reach $3.5 trillion in revenue by 2029, growing at a compound annual growth rate (CAGR) of approximately 3.7% over the period.
Advertising to Drive Revenue Growth
Advertising is expected to be the main revenue growth driver, with ad spend forecasted to grow at a much faster CAGR of about 6.1%, roughly three times faster than consumer E&M spending, which is projected to grow at 2%.
Digital Formats Dominate Advertising Spend
Digital formats will account for 80% of overall ad revenue by 2029, with new technologies like AI and hyper-personalization driving this growth. The rise of digital media has not diminished the significance of offline consumer categories such as cinema, concerts, and live events, which constituted 61% of consumer spending in 2024.
Key Growth Areas
The video games sector is a key growth area, expected to grow from $224 billion to nearly $300 billion between 2024 and 2029, outpacing combined revenues of the film and music industries and growing at a CAGR of about 5.7%. Global box office revenues are projected to grow from $33 billion in 2024 to $42 billion in 2029, with consumers' preferences continuing to shift towards locally produced films.
Economic Uncertainties and Consumer Spending to Influence Growth Trajectory
The overall growth rate of 3.7% in E&M revenue slightly exceeds the projected global economic growth average but remains below pre-pandemic highs, reflecting ongoing economic uncertainties and subdued consumer spending that will continue to influence the industry growth trajectory through 2029.
The Advertising-Driven Growth
Advertising-driven revenue metrics, including retail advertising, social and mobile on-stream video advertising, and connected TV in-stream internet advertising, are projected to grow at rates of 15%, 15%, and 14% respectively over the next five years. Connected TV ad revenues will rise to $51 billion in 2029, equal to 45% of traditional broadcast TV advertising. Retail search advertising in e-shopping is expected to rise from 32.7% in 2020 to 45.5% in 2029, and advertising in video games will rise from 32.8% in 2024 to 38.5% in 2029.
Transformative Impact of AI
Bart Spiegel, global entertainment and media leader at PwC U.S., expects AI to transform delivery models, democratize content production, and reduce barriers to entry in the E&M industry. Wilson Chow, global technology, media and telecommunications leader at PwC China, states that consumer spend growth is stagnating due to competition and economic uncertainty, but that entertainment and media businesses can capture new audiences and generate growth by leveraging the power of advertising and AI.
The Pronounced Growth Rates
The pronounced growth rates are set to see the gulf between connectivity and advertising spend rapidly narrow by 2029. The fastest growing markets globally continue to be in developing markets, including India and Indonesia, all with CAGRs above 7.5%. In India, internet advertising is growing at a CAGR of 15.9%, driven by expanding internet penetration, rising 5G connectivity, and the popularity of social media and short-form video content.
In conclusion, the global E&M industry is on the cusp of a significant transformation, with advertising emerging as the leading powerhouse of the industry's revenues. The rise of digital formats, AI, and hyper-personalization, combined with the growth in key areas such as video games and cinema, promise a bright future for the industry. However, economic uncertainties and subdued consumer spending will continue to influence the industry's growth trajectory through 2029.
- In the global entertainment and media sector, digital formats are projected to account for 80% of total ad revenue by 2029, driven by new technologies like AI and hyper-personalization.
- The video games sector is a key growth area, with revenues expected to grow from $224 billion in 2024 to nearly $300 billion in 2029, outpacing combined revenues of the film and music industries.
- Advertising-driven revenue metrics, such as retail advertising, social and mobile on-stream video advertising, and connected TV in-stream internet advertising, are forecasted to grow at rates of 15%, 15%, and 14% respectively over the next five years.
- PwC's report suggests that AI will transform delivery models, democratize content production, and reduce barriers to entry in the entertainment and media industry.
- The fastest growing markets globally continue to be in developing markets, including India and Indonesia, with CAGRs above 7.5%. In India, internet advertising is growing at a CAGR of 15.9%, driven by expanding internet penetration, rising 5G connectivity, and the popularity of social media and short-form video content.
- Global box office revenues are projected to grow from $33 billion in 2024 to $42 billion in 2029, with consumers' preferences continuing to shift towards locally produced films.
- Television broadcasting will see a shift as connected TV ad revenues will rise to $51 billion in 2029, equal to 45% of traditional broadcast TV advertising.
