Ad revenues of $1 trillion forecasted for entertainment and media industry
The global entertainment and media industry’s advertising revenues will top $1 trillion in 2026, with revenues in 2028 being double the revenues of 2020. The industry is looking to Generative AI to drive new revenue streams and transform business models, according to consultancy PwC’s 2024-28 outlook for the industry.
The industry revenues rose 5% to US$2.8 trillion in 2023 and are projected to reach $3.4 trillion in 2028.
“Streaming service usage and uptake continues to rise, but market players look to consolidation, live sports, password-sharing crackdowns and ad-based revenue to drive growth as industry competition intensifies.”
“Gaming remains among the fastest growing E&M sectors globally: largely driven by Asia-Pacific, revenue expected to top $300 billion in 2028.”
The outlook covers 11 revenue segments across 53 countries and territories noting that the US remains the world’s largest consumer spending and advertising market (4.3% CAGR to 2028), representing more than one-third of global spending in 2023.
Other large markets are China (7.1%) and India (8.3%), Less mature markets such as Indonesia (8.5%) and Nigeria (10.1%), are growing more quickly.
“Internet advertising is the largest and one of the fastest-growing components of the advertising industry. It grew 10.1% in 2023, adding $52.5 billion in new revenues, and is projected to rise at a 9.5% CAGR through 2028, when it will account for 77.1% of total ad spending.”
From the report:
- Global subscriptions to over-the-top (OTT) video services will rise to 2.1 billion in 2028 from 1.6 billion in 2023 – representing a 5% CAGR. Global average revenue per OTT video subscription is barely expected to grow, rising from $65.21 in 2023 to $67.66 in 2028.
- Global gaming, which includes e-sports (competitive gaming with professional tournaments and live spectators), continued its streak as one of the fastest-growing large sectors in the E&M universe, with total revenue hitting $227.6 billion in 2023, up 4.6%.
- Aided by a number of blockbuster releases in 2023, cinema saw a 30.4% year-on-year increase in spending at the box office. Global cinema revenues are poised to surpass their pre-pandemic, 2019 levels in 2026.
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