The global entertainment and media (E&M) industry, particularly Streaming and Gaming, has demonstrated remarkable resilience and growth in 2023, achieving a 5% increase in total revenues, reaching US$2.8 trillion. This growth, as reported in PwC’s Global Entertainment & Media Outlook 2024-28, surpasses overall economic expansions, with projections setting the industry on a path to achieve $3.4 trillion by 2028. The report underscores a compound annual growth rate (CAGR) of 3.9%, reflecting robust sector advancements and strategic adaptations.
Advertising Revenue Boom
A significant highlight from the outlook is the expected milestone in advertising revenues, which are projected to surpass the $1 trillion mark by 2026. This surge represents a doubling of revenues since 2020 and is anticipated to account for over half (55%) of the total E&M industry’s growth over the next five years. Internet advertising, in particular, has grown by 10.1% in 2023, adding $52.5 billion in new revenues. By 2028, it is expected to constitute 77.1% of total advertising expenditures.
Streaming Services Adapt to Market Dynamics
As the market for streaming services becomes increasingly competitive, major players are shifting strategies. Traditional subscription models are being complemented with ad-based revenue systems, crackdowns on password sharing, the incorporation of live sports, and market consolidation. These changes are essential as the global subscriptions for over-the-top (OTT) video services are expected to increase from 1.6 billion in 2023 to 2.1 billion in 2028, with only a modest rise in revenue per subscription from $65.21 to $67.66.
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Gaming and Live Events Drive Sector Growth
The gaming industry continues to be a standout within the E&M sector, particularly fueled by robust growth in the Asia-Pacific region. Expected to reach $300 billion in revenue by 2028, gaming is complemented by a resurgence in live events like global cinema and music tours, which are significantly contributing to consumer spending. The cinema sector alone witnessed a 30.4% increase in box office spending in 2023, with projections to surpass pre-pandemic levels by 2026.
Generative AI: A Future Growth Vector
The integration of Generative AI is poised to transform the E&M industry fundamentally. By enhancing creative processes and business models, AI technologies offer new avenues for revenue generation and operational efficiencies. As the industry continues to navigate technological disruptions, the potential of AI to drive value creation through innovation remains a pivotal area of focus.
As articulated by industry leaders from PwC, the E&M sector is at a critical juncture where embracing technological innovations and adapting to consumer preferences will dictate future success. The industry’s ability to leverage Generative AI and other emerging technologies will not only redefine entertainment and media landscapes but also ensure sustained growth in an increasingly digital world.
