Global Entertainment And Media Revenues To Hit US$3.4 Trillion By 2028, Says PwC | Broadcast Media Africa

Despite economic challenges and heightened competition, the global entertainment and media (E&M) industry demonstrated remarkable resilience, achieving a significant 5% revenue growth in 2023, reaching $2.8 trillion. This growth outpaced the overall economic growth rate reported by the IMF.

According to PwC’s Global Entertainment & Media Outlook 2024-28, the industry is projected to reach US$3.4 trillion in revenues by 2028, growing at a 3.9% compound annual growth rate (CAGR).

The report covers various revenue segments across 53 countries and anticipates that advertising revenue will exceed US$1 trillion by 2026, contributing more than half (55%) of the total E&M industry growth over the next five years.

Streaming services, which have traditionally relied on subscriptions, are now encountering increased competition and challenges in consumer engagement. To drive growth, they are turning their focus towards live sports, combating password sharing, and adopting ad-based models.

The United States continues to be the largest market for consumer spending and advertising, with a projected 4.3% CAGR through 2028, representing over one-third of global spending in 2023. However, faster-growing markets like China (7.1%), India (8.3%), Indonesia (8.5%), and Nigeria (10.1%) are gaining significant traction, presenting exciting new opportunities for market players.

Werner Ballhaus, Global Entertainment & Media Leader at PwC Germany, emphasized the need for market players to reinvent their business models in light of shifts in consumer preferences and the growing influence of digital transformation and emerging technologies such as Generative AI. Leveraging advertising growth and capitalizing on AI’s potential while diversifying product offerings and connecting with consumers online will be key for market players to tap into the expanding revenue pools.

Global advertising revenue is expected to grow 6.7% CAGR through 2028, surpassing connectivity (2.9%) and consumer segments (2.2%). Internet advertising, the largest and fastest-growing component, is projected to grow at a 9.5% CAGR through 2028, accounting for 77.1% of total ad spending.

While streaming service subscriptions are on the rise, the growth rate is slowing, and global subscriptions to OTT video services are expected to reach 2.1 billion by 2028. Additionally, global gaming, including e-sports, continues to be one of the fastest-growing sectors, with Asia-Pacific expected to account for 54.4% of global gaming revenue by 2028.

In-person, tech-enabled experiences such as live music and cinema are driving consumer spending growth, with movie box office and music ticket sales comprising 38.6% of the overall increase in 2023. Live music revenues surged by 26%, propelled by major events, while cinema spending saw a 30.4% increase, with global revenues projected to surpass pre-pandemic levels by 2026.

Wilson Chow, Global Technology, Media and Telecommunications (TMT) Industry Leader at PwC China, underscored the potential of emerging technologies such as Generative AI to create value and reshape business and creative models. As the industry looks to the future, the focus will be on how Generative AI can lead to greater value creation through experimenting, iterating, and scaling new solutions and processes, instilling a sense of optimism about the industry’s future.