Key Points
- The entertainment and media industry is forecast to be worth $3.5 trillion by 2029, according to a PwC report.
- The primary driver of this growth is the increasing use of artificial intelligence in advertising.
- Advertising is becoming increasingly important as consumers reduce their spending on other items, such as subscriptions and other discretionary purchases.
- Digital advertising is expected to make up 80% of all ad revenue in the industry by 2029.
The global entertainment and media industry is poised to grow into a $3.5 trillion behemoth by 2029, with the primary driver of this growth being the increasing adoption of artificial intelligence in advertising. That’s according to a new report from the consulting firm PwC. The report predicts a steady annual growth rate of 3.7%, which is also supported by a resurgence in live events.
This growth occurs at a time when many people are reducing non-essential spending, such as movie tickets and streaming subscriptions, due to economic uncertainty. PwC says advertising is emerging as the key revenue driver for the industry, essentially subsidizing content for consumers.
The report highlights the massive shift to digital advertising. Digital ads, which made up 72% of ad revenue in 2024, are expected to command 80% of the market by 2029. Technologies like AI and hyper-personalization are making these ads more effective.
PwC also highlighted strong growth in ad revenue from connected TVs and a booming video game market, which is projected to be worth around $300 billion by 2029.
Bart Spiegel, a global media leader at PwC, noted that “advertising starts to subsidize a lot of that” pressure on consumers’ wallets. He added that while the industry has always been at the forefront of technology, companies will need to stay “nimble and proactive” to succeed in a world that rewards creativity and personalized content.
