A PwC report predicts global media and entertainment revenues will hit $3.5 trillion in 2029.
Released today, the PwC Global Entertainment and Media Outlook 2025-29 shows revenues edged towards the US$3 trillion mark in 2024, with a surge in advertising spend expected to drive continuing growth to the end of the decade. PwC forecasts the industry will expand at a compound annual growth rate (CAGR) of 3.7 per cent until 2029, higher than the projected global economic growth average but still down on pre-pandemic levels.
With economic uncertainties and competition exerting pressure on growth across paid or subscription products, advertising is expected to exhibit the strongest growth of the three major M&E categories analysed (connectivity, advertising and consumer).
Over the next five years, the fastest growing M&E revenue metrics are all advertising driven, said PwC, including CTV in-stream advertising at 14 per cent and mobile on-stream video advertising at 15 per cent.
According to the report, the impact of AI on connected TV (CTV) is likely to influence growth significantly. In 2020, CTV ad revenue equated to 5.9 per cent of total broadcast TV advertising. Last year, this figure had grown to 22 per cent. As digital engagement continues to expand and AI-driven personalisation advances, revenues are expected to reach $51 billion in 2029, representing 45 per cent of traditional TV advertising.
Bart Spiegel, global entertainment and media leader, PwC US, said: “As the E&M industry continues to be impacted by broader economic uncertainty and constrained consumer spending, advertising is emerging as the leading powerhouse of the global entertainment and media industry’s revenues – a transformation expected to continue as AI transforms delivery models, democratises content production, serves highly curated content experiences, and reduces barriers to entry.
“The E&M industry has always been at the forefront of technological innovation, but companies will need to remain nimble and proactive to embrace the future and satisfy consumers in an ecosystem that rewards creativity and tailored content.”
