Maya Robertson
The global entertainment and media (E&M) industry is projected to reach $3.5 trillion in annual revenue by 2029, according to PwC’s latest Global Entertainment & Media Outlook 2025–2029. This growth will be driven in large part by accelerating adoption of artificial intelligence in advertising, shifting spending patterns, and steady demand for live events and video games.
PwC’s report forecasts that the sector will grow at a compound annual growth rate (CAGR) of 3.7% through 2029. That’s above the projected global economic average, but still trails the stronger pre-pandemic growth levels. Economic pressures, including inflation and tighter consumer budgets, are limiting discretionary spending on digital entertainment, subscriptions, and cinema outings.
As consumer spending remains constrained, advertising is emerging as a major revenue engine. PwC expects global advertising spend in the E&M sector to expand at a CAGR of 6.1% through 2029—three times faster than direct consumer spending growth. Advertising already accounted for 72% of all E&M ad revenue in 2024 and is forecast to reach 80% by the end of the forecast period, driven by the rollout of AI tools and hyper-personalized content delivery.
“Advertising is set to play an even bigger role in offsetting pressures on consumer spending,” said Bart Spiegel, PwC’s global entertainment and media leader. “The sector must adapt to an ecosystem that rewards innovative content and data-driven targeting.”
Digital formats are expected to dominate the global advertising landscape, with connected TV ad revenue forecast to climb to $51 billion in 2029, up significantly from prior years. AI technologies are expected to enhance content personalization and automate ad delivery, while also expanding opportunities for brands to reach segmented audiences at scale.
Retail search advertising in online shopping is also a standout, projected to grow from 32.7% in 2020 to nearly 46% of total retail ad spend by 2029. Advertising within video games is rising too—climbing from 32.8% of in-game revenues in 2024 to 38.5% by 2029 as publishers tap into larger, highly engaged audiences.
Non-digital spending remains significant despite the dominance of online platforms. Live music, in-person events, and cinema box office sales accounted for 61% of total consumer E&M spend in 2024, and that balance is likely to hold steady. Global cinema revenue alone is expected to grow from $33 billion in 2024 to around $42 billion by 2029, with audiences increasingly favoring locally produced films over big-budget U.S. studio releases.
Video gaming continues to outshine other segments in growth potential. Total video game revenues reached $224 billion last year and are projected to hit nearly $300 billion in 2029, outpacing combined movie and music industry revenues. The sector’s 5.7% CAGR underscores gaming’s role as a key pillar of E&M industry expansion.
Developing regions continue to post the strongest growth rates. China’s E&M revenues are forecast to grow at 6.1% annually, fueled by a nearly 9% CAGR in its internet ad segment. India’s market is forecast to expand at more than 7.5% annually, driven by booming internet use, expanding 5G coverage, and the popularity of social media and short-form video.
PwC’s report concludes that E&M companies must be ready to deploy AI tools, develop new ad models, and adapt to shifting consumer behaviors to capture future growth. While traditional spending patterns persist in live experiences and local content, digital ecosystems and ad innovation will define how companies scale revenue in the years ahead.
Comments
Loading…