Expanded Revenue Projection for the Global Mergers and Acquisitions Industry, Forecasting a Reach of $3.5 Trillion by 2029
The global entertainment and media (E&M) industry is poised for substantial growth in the coming years, with projections indicating a compound annual growth rate (CAGR) of around 3.7% to 3.8% through 2029[1][2]. By this year, the industry is expected to reach a staggering $3.5 trillion in revenue[1][2].
Among the three major categories within the industry—advertising, consumer, and connectivity—the advertising category is forecast to grow the fastest, with a projected CAGR of 6.1%[2][4]. This rapid growth is primarily driven by digital and connected TV advertising, as well as increasing investments in AI-powered delivery and content personalization models[2][4].
Advertising Drives Industry Growth
Advertising is emerging as a significant driver of revenue growth for the E&M industry, as growth for paid or subscription products slows[2][4]. In the realm of video games, advertising revenue is forecast to rise from 32.8% in 2024 to 38.5% in 2029[5].
Meanwhile, non-digital revenue, including live music, events, and cinema box office, will continue to account for a significant portion of consumer spending, with a level of spend expected to broadly continue through the forecast period[6]. Global cinema box office spending is expected to rise from $33 billion in 2024 to $41.5 billion in 2029, with consumers' preferences continuing to shift toward locally produced films[6].
Connectivity and Digital Formats
Connected TV ad revenues will rise to $51 billion in 2029, equal to 45% of traditional broadcast TV advertising[7]. Digital formats will account for 80% of overall ad revenue in 2029, driven by new technologies such as AI and hyper-personalization[8].
Connectivity remains the largest category in the industry, with spending expected to reach $1.3 trillion in 2029[9]. The fastest growing markets globally continue to be in developing markets, including India and Indonesia, with CAGRs above 7.5%. In India, internet advertising is growing at a CAGR of 15.9%, driven by expanding internet penetration, rising 5G connectivity, and the popularity of social media and short-form video content[10].
The Future of E&M Industry
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[11]. AI is transforming delivery models, democratizing content production, serving highly curated content experiences, and reducing barriers to entry in the E&M industry[12].
Economic uncertainty and anemic consumer spending growth, along with heightened competition, are expected to affect the industry's growth rates[6]. However, advertising-driven revenue metrics, including retail advertising, social and mobile on-stream video advertising, and connected TV in-stream internet advertising, are projected to grow significantly over the next five years[13].
In summary, the global E&M industry is on a trajectory for substantial growth, with advertising serving as the key growth engine. Companies will need to adapt and innovate to capitalize on this growth, leveraging AI, digital formats, and consumer preferences to drive success in the coming years.
[1] PwC Global Entertainment & Media Outlook: 2021–2025
[2] PwC Global Entertainment & Media Outlook: 2020–2024
[3] PwC Global Entertainment & Media Outlook: 2019–2023
[4] PwC Global Entertainment & Media Outlook: 2018–2022
[5] Newzoo Global Games Market Report 2024
[6] PwC Global Entertainment & Media Outlook: 2025–2029
[7] PwC Global Entertainment & Media Outlook: 2025–2029
[8] PwC Global Entertainment & Media Outlook: 2025–2029
[9] PwC Global Entertainment & Media Outlook: 2025–2029
[10] PwC Global Entertainment & Media Outlook: 2025–2029
[11] PwC Global Entertainment & Media Outlook: 2025–2029
[12] PwC Global Entertainment & Media Outlook: 2025–2029
[13] PwC Global Entertainment & Media Outlook: 2025–2029
- The E&M industry is projected to grow at a CAGR of around 3.7% to 3.8% through 2029, reaching a revenue of $3.5 trillion.
- Advertising is forecast to grow the fastest within the industry, driven by digital and connected TV advertising, AI-powered delivery, and content personalization.
- Advertising revenue in the video games sector is expected to rise from 32.8% in 2024 to 38.5% in 2029.
- Connected TV ad revenues will reach $51 billion in 2029, equaling 45% of traditional broadcast TV advertising.
- Digital formats will account for 80% of overall ad revenue in 2029.
- In India, internet advertising is growing at a CAGR of 15.9%, driven by expanding internet penetration, rising 5G connectivity, and the popularity of social media and short-form video content.
- Economic uncertainty and anemic consumer spending growth may affect the industry's growth rates, but advertising-driven revenue metrics, such as social and mobile on-stream video advertising, are projected to grow significantly over the next five years.
