The global entertainment and media (E&M) industry is set to reach a staggering US$3.5 trillion by 2029, growing from just under $3 trillion in 2024, according to PwC’s latest Global Entertainment & Media Outlook 2025–29. While overall growth is projected at a CAGR of 3.7%, outperforming global economic expansion, the report warns that momentum remains tempered by economic uncertainty and sluggish consumer spending.
Advertising Outpaces Consumer Spend
A standout trend in the report is the resurgence of advertising as the primary growth engine for the E&M industry. With consumer spending projected to grow at just 2%, advertising spend is forecast to rise at three times that pace (6.1% CAGR). This acceleration is being driven by AI-led transformation of advertising models that promise hyper-personalised, platform-specific delivery.
“Advertising is emerging as the leading powerhouse of global E&M revenues,” said Bart Spiegel, Global Entertainment and Media Leader, PwC US. “AI is reshaping how content is delivered, created, and monetised—bringing new agility to the industry.”
Among the highest growth areas are:
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Retail media advertising – 15% CAGR
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Social and mobile video ads – 15% CAGR
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Connected TV advertising – 14% CAGR
Digital ad formats, already accounting for 72% of total ad revenue in 2024, are expected to command 80% share by 2029. Video game advertising will also see a spike, increasing from 32.8% to 38.5% of total gaming revenue in five years.
Connected TV: The Future of Screen Advertising
Connected TV (CTV)—which includes internet-enabled television and streaming platforms—is undergoing rapid expansion. CTV ad revenue has grown from 5.9% of total traditional broadcast TV advertising in 2020 to 22% in 2024. By 2029, PwC estimates this will nearly double to $51 billion, equating to 45% of traditional TV ad revenue, boosted by AI-facilitated targeting and interactivity.
Non-Digital Spending Still Dominates
Despite the digital boom, consumers still allocate the majority of their budgets to non-digital experiences. In 2024, 61% of consumer spend went toward in-person entertainment such as live music, cinema, and events. Global cinema revenue is expected to grow from $33 billion in 2024 to $41.5 billion by 2029, bolstered by a surge in demand for locally produced films, which are increasingly challenging the dominance of US studios.
Video Gaming Outshines Movies and Music
Video games continue to be a dominant force in global E&M, with revenue hitting $224 billion in 2024—already surpassing combined movie and music earnings. By 2029, this number is forecast to rise to $300 billion, at a CAGR of 5.7%. The growth is attributed to the sector’s innovation in monetisation, audience engagement, and in-game advertising.
Emerging Markets, Especially India, Drive Growth
While the US remains the largest E&M market by absolute revenue, growth in developing markets is outpacing mature economies. India and Indonesia are projected to grow at CAGRs above 7.5%. India, in particular, is witnessing internet advertising growth at a staggering 15.9% CAGR, thanks to deeper internet penetration, growing 5G adoption, and the widespread popularity of short-form video and mobile-first platforms.
“Consumers have never had as numerous or diverse choices of entertainment services on offer, but this competition, paired with economic uncertainty and rising costs, is seeing consumer spend growth stagnate. If entertainment and media businesses are to capture new audiences and generate growth, they must be thinking about the connected ecosystems in which they operate, leveraging the power of advertising and AI, the combination of which is allowing for far more cost-effective and personalised content creation and engagement models.” noted Wilson Chow, PwC’s Global TMT Leader.
Key Projections from PwC E&M Outlook 2025–29
| Metric | 2024 | 2029 | CAGR |
|---|---|---|---|
| Global E&M Revenue | $2.99 Trillion | $3.5 Trillion | 3.7% |
| Advertising Spend | – | – | 6.1% |
| Consumer Spend | – | – | 2.0% |
| Video Gaming Revenue | $224 Billion | $300 Billion | 5.7% |
| Global Cinema Revenue | $33 Billion | $41.5 Billion | – |
| India Internet Ad Revenue CAGR | – | – | 15.9% |
