The global entertainment and media (E&M) industry grew last year with total revenues rising 5% in 2023 to US$2.8 trillion – outpacing overall economic growth cited by the IMF – according to PwC’s Global Entertainment & Media Outlook 2024-2028. Advertising is projected to account for 55% of the total E&M industry’s growth over the coming five years based on the three broad E&M segments analyzed.
Global ad revenue is expected to grow at a 6.7% compound annual growth rate (CAGR) through 2028, ahead of the other two segments analyzed: connectivity (2.9%) and consumer (2.2%). Total ad revenue is projected to hit US$1 trillion in 2026. The outlook covers 11 revenue segments across 53 countries and territories. It projects that global E&M revenues are expected to hit US$3.4 trillion in 2028, growing at a 3.9% CAGR.
Looking across the globe, the U.S. remains the world’s largest consumer spending and advertising market, representing more than one-third of global spending in 2023. Growth is predicted at 4.3% CAGR to 2028, although other large markets including China (7.1%) and India (8.3%), and less mature markets such as Indonesia (8.5%) and Nigeria (10.1%), are growing more quickly.
Online is the largest and one of the fastest-growing components of the ad industry. It grew 10.1% in 2023, adding US$52.5 billion in new revenues. It is projected to rise at a 9.5% CAGR through 2028, when it will account for 77.1% of total ad spending.
Streaming service usage and consumer uptake is rising, although at a lower rate than in recent years, as service-providers face increased competition and challenges in getting consumers to pay more for digital goods and services. Global subscriptions to over-the-top (OTT) video services are expected to rise to 2.1 billion in 2028 from 1.6 billion in 2023. Global average revenue per OTT video subscription is barely expected to grow, rising from US$65.21 in 2023 to US$67.66 in 2028.
This plateauing effect is pushing streamers to reshape business models and find new revenues beyond subscriptions, including the introduction of ad-based subscription tiers on Amazon, cracking down on password-sharing on Netflix introduction of live sports, and industry consolidation. This consolidation is taking the form of bundling subscription service providers in many markets. By 2028, advertising will account for about 28% of OTT global streaming revenues, up from 20% in 2023.
Global gaming, which includes e-sports, continued to be one of the fastest-growing with total revenue hitting US$227.6 billion in 2023, up 4.6%. Revenue is on track to top US$300 billion in 2027, almost double its level in 2019. Also within E&M, in-person, real-life, tech-enabled experiences such as live music and cinema remain key growth industries, with movie box office and music ticket sales representing 38.6% of 2023’s net increase in consumer spending worldwide.
