The rising adoption of AI in advertising is set to drive global entertainment and media industry revenues to $3.5 trillion by 2029, according to PwC.
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In its Global Entertainment & Media Outlook 2025, 29 released Thursday, the firm projects a 3.7% compound annual growth rate through 2029, with additional support from non-digital segments like live events.
WHY IT MATTERS
Rising inflation and evolving trade policies are fueling economic uncertainty, leading consumers to reduce non-essential spending impacting areas like streaming subscriptions, cinema visits, and digital media consumption.
PwC notes that, amid these challenges, advertising is becoming a key growth engine for the broader entertainment and media industry.
KEY FIGURES
Digital formats made up 72% of total ad revenue in 2024 and are projected to climb to 80% by 2029. According to the report, advancements in AI and hyper-personalization will further accelerate adoption across end markets.
Ad revenue from connected TV is projected to reach $51 billion by 2029, fueled by increased digital engagement, according to PwC.
The sector is also expected to gain from robust growth in video game revenue, which is anticipated to hit approximately $300 billion by 2029
“There are broad macroeconomic pressures affecting individuals and families, and advertising is increasingly stepping in to offset those costs,” said Bart Spiegel, Global Entertainment and Media Leader at PwC U.S.
The 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,” Spiegel said.