PwC’sGlobal Entertainment & Media Industry Outlook 2024-28
The global entertainment and media (E&M) industry continues to defy economic headwinds, showcasing remarkable resilience and growth.
According to PwC’s Global Entertainment & Media Outlook 2024-28, the industry is on track to hit a significant milestone, with advertising revenues projected to reach US$1 trillion by 2026.
This surge in growth paints a picture of an industry in flux, adapting to technological disruptions and evolving consumer preferences.
Rising Revenues in a Changing Landscape
Despite facing economic challenges and increased competition, the E&M industry saw its total revenues rise by 5% in 2023, reaching US$2.8 trillion.
This growth outpaced overall economic growth as cited by the IMF, highlighting the sector’s robustness.
The industry is projected to hit $3.4 trillion in revenues by 2028, growing at a 3.9% compound annual growth rate (CAGR).
The Advertising Boom
At the heart of this growth story is the advertising sector.
Set to hit the $1 trillion mark in 2026, advertising is expected to account for more than half (55%) of the total E&M industry revenue growth over the next five years.
Internet advertising is leading the charge, growing at a 9.5% CAGR through 2028. By then, it’s projected to account for a staggering 77.1% of total ad spending.
Streaming Services: Adapting to Stay Ahead
While the E&M industry is thriving, streaming services face unique challenges. As competition intensifies and consumer uptake plateaus, these services are exploring new avenues for growth.
Global subscriptions to over-the-top (OTT) video services are expected to rise from 1.6 billion in 2023 to 2.1 billion in 2028, representing a 5% CAGR.
However, revenue per subscription is barely growing, prompting streaming giants to reshape their business models.
To drive growth, streaming services are turning to various strategies:
Introducing ad-based variants
Cracking down on password-sharing
Incorporating live sports content
Pursuing industry consolidation
By 2028, advertising is expected to account for about 28% of global streaming revenues, up from 20% in 2023, signalling a significant shift in the streaming landscape.
Gaming: The Rising Star
The gaming industry, including e-sports, continues to be one of the fastest-growing sectors in the E&M universe.
With total revenue hitting $227.6 billion in 2023, the industry is on track to surpass $300 billion by 2027 – nearly doubling its 2019 level.
Asia-Pacific remains the powerhouse in this sector, expected to represent 54.4% of the global gaming market by 2028, with revenues of $181.8 billion.
The Return of Live Events
While digital platforms continue to dominate, in-person experiences are making a strong comeback.
Live music and cinema have emerged as key growth drivers, with movie box office and music ticket sales accounting for 38.6% of 2023’s net increase in consumer spending worldwide.
Live music revenues surged by 26%, driven by large-scale events such as world tours.
Meanwhile, the cinema industry saw a remarkable 30.4% year-on-year increase in box office spending, buoyed by several blockbuster releases.
Global cinema revenues are expected to surpass their pre-pandemic levels by 2026, signalling a robust recovery for the sector.
The AI Revolution
As the E&M industry continues to evolve, Generative AI emerges as a potential game-changer.
Industry players are looking to AI to drive new revenue streams and transform business models.
While initial applications have focused on improving speed and efficiency, the future lies in leveraging AI for greater value creation through experimentation, iteration, and scaling of new solutions and processes.
Global Growth Patterns
While the United States remains the world’s largest consumer spending and advertising market, growing at a 4.3% CAGR to 2028, other markets are showing more rapid growth.
China (7.1% CAGR), India (8.3%), Indonesia (8.5%), and Nigeria (10.1%) are among the fastest-growing markets, reflecting the shifting dynamics of the global E&M landscape.
Looking Ahead: Challenges and Opportunities
As the E&M industry approaches the trillion-dollar advertising milestone, it faces both risks and opportunities.
Shifts in consumer preferences and the ongoing impact of digital transformation present challenges, but also inspire innovation and business model reinvention.
Werner Ballhaus, Global Entertainment & Media Leader at PwC Germany, highlights the need for companies to reimagine how they create, deliver, and capture value.
As consumers increasingly gravitate towards online content, companies must diversify their offerings and engage with audiences on their preferred platforms.
