The global entertainment and media (E&M) industry is poised for major expansion, expected to reach US$3.5 trillion by 2029, according to PwC’s Global Entertainment & Media Outlook 2025–29. Up from just under $3 trillion in 2024, this marks a compound annual growth rate (CAGR) of 3.7%, outpacing broader global economic growth. However, the report cautions that continued economic uncertainty and cautious consumer spending could moderate this trajectory.
AI-Led Advertising Takes the Lead as Primary Growth Engine
A defining trend shaping the industry’s future is the resurgence of advertising as the primary growth driver, with advertising spend projected to grow at 6.1% CAGR—triple the pace of consumer spend (2.0% CAGR).
“Advertising is emerging as the leading powerhouse of global E&M revenues,” said Bart Spiegel, Global Entertainment and Media Leader, PwC US. “AI is reshaping how content is delivered, created, and monetised—bringing new agility to the industry.”
The surge is being fueled by AI-powered personalization, platform-specific ad delivery, and a shift to digital-first formats. Digital advertising, already 72% of global ad revenue in 2024, will rise to 80% by 2029.
Key High-Growth Advertising Segments
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Retail Media Advertising – 15% CAGR
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Social and Mobile Video Ads – 15% CAGR
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Connected TV (CTV) Advertising – 14% CAGR
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Video Game Advertising – rising to 38.5% of gaming revenue by 2029
Connected TV (CTV) to Capture 45% of Broadcast Ad Spend by 2029
Connected TV (CTV) is redefining screen-based advertising. Ad revenue from CTV has grown from just 5.9% of total broadcast TV advertising in 2020 to 22% in 2024. By 2029, it is projected to soar to $51 billion, representing 45% of traditional TV ad revenue, driven by AI-based targeting and interactive capabilities.
Traditional Experiences Still Dominate Consumer Spend
Despite the digital acceleration, traditional media still commands a larger share of consumer wallets. In 2024, 61% of consumer entertainment spend was directed toward in-person experiences such as live music, cinema, and events.
Global cinema revenue, for instance, is expected to grow from $33 billion in 2024 to $41.5 billion by 2029, with a notable increase in demand for locally produced films competing with Hollywood’s dominance.
Video Gaming Continues to Eclipse Film and Music Revenues
With revenues of $224 billion in 2024, the video gaming industry has already outpaced global movie and music earnings combined. By 2029, this figure is expected to rise to $300 billion, registering a 5.7% CAGR. Growth is attributed to innovative monetization, in-game advertising, and deeper audience engagement strategies.
Emerging Markets Fuel E&M Growth, Led by India
While the United States remains the largest market by total revenue, emerging economies are powering the next growth wave. India and Indonesia are set to grow at CAGRs exceeding 7.5%.
India, in particular, is witnessing a remarkable surge in internet advertising, with a 15.9% CAGR, thanks to:
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Increasing internet and smartphone penetration
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Rapid 5G adoption
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Explosion of mobile-first and short-form video platforms
Strategic Shift: AI + Advertising = The Future of E&M
“Consumers have never had as numerous or diverse choices of entertainment services on offer, but this competition, paired with economic uncertainty and rising costs, is seeing consumer spend growth stagnate,” said Wilson Chow, PwC’s Global TMT Leader.
“If entertainment and media businesses are to capture new audiences and generate growth, they must be thinking about the connected ecosystems in which they operate, leveraging the power of advertising and AI…”
Key PwC E&M Industry Outlook Metrics (2024–2029)
| Metric | 2024 Value | 2029 Projection | CAGR |
|---|---|---|---|
| Global E&M Revenue | $2.99 Trillion | $3.5 Trillion | 3.7% |
| Advertising Spend | – | – | 6.1% |
| Consumer Spend | – | – | 2.0% |
| Video Gaming Revenue | $224 Billion | $300 Billion | 5.7% |
| Global Cinema Revenue | $33 Billion | $41.5 Billion | – |
| India Internet Ad Revenue | – | – | 15.9% |
As the global entertainment and media landscape continues to evolve, businesses must align with AI-driven innovations, hyper-personalized content delivery, and emerging market dynamics to stay relevant and profitable.
