LONDON—Global entertainment and media industry revenue edged towards $3 trillion in revenue in 2024 and is forecast to hit $3.5 trillion in 2029 as advertising spend surges across platforms, according to PwC’s "Annual Global Entertainment & Media Outlook 2025-29."
The report found that the industry is projected to grow at a compound annual growth rate (CAGR) of 3.7% until 2029 – a rate above the projected global economic growth average, but below pre-pandemic highs.
Economic uncertainty and anemic consumer spending growth, amid heightened domestic and international competition in the industry, is expected to weigh on E&M growth rates through the forecast period until 2029, the report found.
Bart Spiegel, global entertainment and media leader, PwC U.S. explained that “as the E&M industry continues to be impacted by broader economic uncertainty and constrained consumer spending, advertising is emerging as the leading powerhouse of the global entertainment and media industry’s revenues – a transformation expected to continue as AI transforms delivery models, democratizes content production, serves highly curated content experiences, and reduces barriers to entry. The E&M industry has always been at the forefront of technological innovation, but companies will need to remain nimble and proactive to embrace the future and satisfy consumers in an ecosystem that rewards creativity and tailored content.”
The report found that for now, connectivity remains the largest of the three categories (advertising, consumer and connectivity) that PwC focused on, with spending reaching $1.3 trillion in 2029, growing at CAGR of 2.8% and driven mainly by mobile internet service revenue. However, advertising’s pronounced growth rates are set to see the gulf between connectivity and advertising spend rapidly narrow by 2029.
As growth for paid or subscription products slows amid heightened industry competition and constrained consumer spending – particularly in mature markets – advertising is forecast to represent a significant driver of revenue growth for the E&M industry at-large.
PwC projects that of the three major categories covered in the report advertising is expected to grow fastest—three times as fast (6.1% CAGR) as the consumer category (2%).
The fastest growing E&M revenue metrics over the next five years are all advertising driven—including retail advertising (15%), social and mobile on-stream video advertising (15%), and connected TV in-stream internet advertising (14%). Digital formats, which account for 72% of overall ad revenue in 2024, will rise to 80% in 2029, with new technologies including AI and hyper-personalization expected to drive this even further. High growth areas include retail search advertising in e-shopping (rising from 32.7% in 2020 to 45.5% in 2029) and advertising in video games (rising from 32.8% in 2024 to 38.5% in 2029).
One notable factor in the growth of advertising will be AI, which is set to transform advertising models.
AI is impacting the E&M industry in many ways. One of the areas in which it is likely to influence revenue growth is in connected TV (any television that connects to the internet to stream video content). In 2020, connected TV advertising revenue equated to just 5.9% of total traditional broadcast TV advertising. In 2024, this figure had jumped to 22%. But with the rise of digital engagement and the prospect of AI-assisted hyper-personalization, which may lead to greater end-user uptake, connected TV ad revenues will rise to $51 billion in 2029 – equal to 45% of traditional broadcast TV advertising, the PwC report found.
The study also found that non-digital revenue – including live music, events and cinema box office—lead consumer spending. The report also found that while consumers spend more of their free time online, but they continue to spend more of their entertainment budget offline. In 2024, non-digital formats accounted for 61% of consumer revenue—a level of spend expected to broadly continue through the forecast period.
While global cinema box office spending is expected to rise from $33 billion in 2024 to $41.5 billion in 2029, consumers’ preferences are continuing to shift toward locally produced films. Globally, the top five US studios’ market share has dropped from over 60% before the pandemic to 51% in 2024.
Finally, the study found that the global video gaming industry continues to be an engine of E&M growth, with the global video games market exceeding the movie and music industry combined. Total revenues were $224 billion in 2024, with the industry expected to grow to nearly $300 billion in 2029 at a CAGR of 5.7%.
Excluding connectivity revenues (e.g., mobile service subscriptions), the US comfortably leads as the world’s largest E&M market by revenue. It is forecast to grow at a CAGR of 3.8% until 2029 – lagging below the global average of 4.2%. Looking elsewhere, E&M revenues in China—the second largest market – will rise at a CAGR of 6.1%, powered primarily by its internet advertising segment, with a CAGR or 8.9%. The fastest growing markets globally continue to be in developing markets, including India and Indonesia, all with CAGRs above 7.5%. In India, much of the growth will stem from internet advertising – which 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.
“Consumers have never had as numerous or diverse choices of entertainment services on offer, but this competition, paired with economic uncertainty and rising costs, is seeing consumer spend growth stagnate,” Wilson Chow, global technology, media and telecommunications leader, PwC China. “If entertainment and media businesses are to capture new audiences and generate growth, they must be thinking about the connected ecosystems in which they operate, leveraging the power of advertising and AI, the combination of which is allowing for far more cost-effective and personalized content creation and engagement models.”
