- Global entertainment & media (E&M) industry revenues
rose 5% to US$2.8 trillion in 2023
and projected to hit $3.4 trillion in
2028
- Advertising revenues projected to top $1
trillion in 2026, with revenues in 2028 to represent double
the revenues of 2020
- Streaming service usage and uptake continues to rise, but
market players look to consolidation, live sports, password-sharing
crackdowns and ad-based revenue to drive growth as industry
competition intensifies
- Gaming remains among the fastest growing E&M sectors
globally: largely driven by Asia-Pacific, revenue expected to top
$300 billion in 2028. In-person
events such as global cinema projected to return to pre-pandemic
levels as live-music buoyed by global tours
- Global E&M industry looks to Generative AI to drive new
revenue streams and transform business models
LONDON, July 16,
2024 /CNW/ -- Despite economic headwinds,
technological disruption and increased geographic and industry
competition, the global entertainment & media (E&M)
industry has continued to grow in 2023, with total revenues rising
5% in 2023 to US$2.8 trillion –
outpacing overall economic growth cited by the
IMF[1] – according to PwC's Global
Entertainment & Media Outlook 2024-28, published today.
The outlook, which covers 11 revenue segments across 53
countries and territories, finds that global E&M revenues are
projected to hit $3.4 trillion in
2028, growing at a 3.9% compound annual growth rate (CAGR).
Most notably, advertising revenue is set to hit $1 trillion in 2026 and is projected to account
for more than half (55%) of total E&M industry revenue growth
over the next five years.[2]
The outlook also finds that streaming services, traditionally
dependent on subscription models, face increased competition and
challenges in consumer use and uptake, and are looking to
consolidation, live sports (including mega-events like the Summer
Olympics), a crack-down on password sharing, and ad-based models to
drive growth.
Looking across the globe, the US remains the world's largest
consumer spending and advertising market (4.3% CAGR to 2028),
representing more than one-third of global spending in
2023.[3] However, 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.
Werner Ballhaus, Global
Entertainment & Media Leader, PwC Germany, said:
"As the global entertainment & media industry continues
to grow, market players face both risks and opportunities. Shifts
in consumer preferences, and uncertainty around the continued
impact of digital transformation and new and emerging technology
such as Generative AI, are inspiring a wave of business model
reinvention. If market players are to gain their share of the
growing revenue pools we identify, they will have to reimagine how
their company creates, delivers, and captures value, leveraging the
growth of advertising while also harnessing the powerful
opportunity presented by AI. As consumers increasingly consume
content online, companies will also need to diversify their
product-offerings and continue to connect with consumers on the
platforms where they spend more of their time."
Global advertising revenue to hit $1
trillion in 2026
Global advertising revenue is expected to grow at a 6.7%
compound annual growth rate (CAGR) through 2028, ahead of the other
two broad E&M segments analysed: connectivity (2.9%) and
consumer (2.2%). All the while, total advertising revenue is to hit
$1 trillion in 2026 (while 2028
revenues will hit double the revenues of 2020). 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 analysed.
Internet advertising is the largest and one of the
fastest-growing components of the advertising industry. It grew
10.1% in 2023, adding $52.5 billion
in new revenues, and is projected to rise at a 9.5% CAGR through
2028, when it will account for 77.1% of total ad spending.
Streaming services look to new models to drive growth
Streaming service usage and consumer uptake is rising, albeit 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 will rise to 2.1 billion in 2028
from 1.6 billion in 2023 – representing a 5% CAGR. Global average
revenue per OTT video subscription is barely expected to grow,
rising from $65.21 in 2023 to
$67.66 in 2028.
This plateauing effect is pushing leading streamers to reshape
their business models and find new revenues beyond subscriptions,
including the introduction of ad-based variants (reduced
subscription fees with ad-filled content), cracking down on
password-sharing, introduction of live sports, and industry
consolidation. In developed markets, this consolidation is taking
the form of bundling subscription service providers. By 2028,
advertising will account for about 28% of OTT global streaming
revenues, up from 20% in 2023.
Gaming industry stands out as live-events and global cinema
rebound
Global gaming, which includes e-sports (competitive gaming with
professional tournaments and live spectators), continued its streak
as one of the fastest-growing large sectors in the E&M
universe, with total revenue hitting $227.6
billion in 2023, up 4.6%.[4] Revenue
is on track to top $300 billion in
2027, almost double its level in 2019. Asia-Pacific remains the largest regional
market for gaming, representing 48.1% of the segment's global
total, rising to 54.4% – or $181.8
billion – in 2028.
Elsewhere 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. Driven by large events such as musician world tours,
live music revenues rose 26% and accounted for more than half of
the overall music market.
Aided by a number of blockbuster releases in 2023, cinema saw a
30.4% year-on-year increase in spending at the box office. Global
cinema revenues are poised to surpass their pre-pandemic, 2019
levels in 2026.
Wilson Chow, Global Technology,
Media and Telecommunications (TMT) Industry Leader, PwC China,
concluded:
"The global entertainment & media industry has always
thrived on technological disruption. To capitalise on the many
growth opportunities, it must leverage the power of new and
emerging technologies such as Generative AI, re-shape business and
creative models, and leverage the technology for advertising. So
far, many of the applications of Gen AI in the E&M industry
have focused on speed and efficiency. As we look ahead, the
industry will have to focus on how Gen AI can lead to greater value
creation through experimenting, iterating, and scaling new
solutions and processes."
Notes to Editors:
About the Outlook
PwC's Global Entertainment & Media Outlook 2024-28, now in
its 25th year, provides in-depth analysis of global entertainment
& media (E&M) consumer and advertising spending. The
Outlook includes five-year historical and five-year forecast data
and commentary for 11 industry segments across 53 countries and
territories. Segments are business-to-business; cinema;
connectivity service; internet advertising; music, radio and
podcasts; newspapers, consumer magazines and books; out-of-home
(OOH) advertising; over-the-top (OTT) video; traditional TV; video
games and esports; virtual reality (VR) and augmented reality (AR).
In addition, the Outlook tracks data consumption and important
developments in technologies such as AI, Metaverse and NFTs. The
full Outlook can be accessed at www.pwc.com/outlook.
About PwC
© 2024 PwC. All rights reserved. PwC refers to the PwC network
and/or one or more of its member firms, each of which is a separate
legal entity. Please see www.pwc.com/structure for further
details.
1. International Monetary Fund, World
Economic Outlook, April 2024,
https://mediacenter.imf.org/news/imf---world-economic-outlook-april-2024/s/b5844e32-a21c-4a48-8665-00b667aeb68c.
2. The outlook analysed three broad
E&M categories including: advertising, connectivity, and
consumer. The definitions of each are explored in the outlook.
3. Excluding connectivity revenues.
4. For a full breakdown of E&M
sector growth, please consult the full report on pwc.com.
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