Press Release
• Advertising spend forecasted to grow three times as fast (6.1%) as E&M consumer spending (2%) – as AI set to transform advertising models and drive hyper-personalisation
• Non-digital categories – such as live music, cinema and events – continues to lead consumer sector revenue, accounting for 61% of sector spending in 2024
• Global cinema revenue expected to rise from $33 billion in 2024 to $42 billion in 2029, as international audiences continue to spend more on locally produced films
• Global video games revenue forecast to grow from $224 billion in 2024 to $300 billion in 2029 – exceeding movie and music industry revenues combined
The global entertainment & media (E&M) industry edged towards US$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 E&M 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 anaemic 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.
Advertising to serve as industry engine for revenue growth as AI transforms advertising models
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.
Of the three major E&M categories analysed (connectivity, advertising, consumer), 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-personalisation 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).
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-personalisation, 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.
For now, connectivity remains the largest category, with spending reaching US$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.
Non-digital revenue – including live music, events and cinema box office – lead consumer spending
Consumers may 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.
Video gaming remains an industry bright spot
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%.
