Artificial Intelligence words are seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
-Growing use of artificial intelligence in advertising is expected to boost the global entertainment and media industry's revenue to $3.5 trillion by 2029, according to PwC.
The industry is projected to record a compound annual growth rate of 3.7% until 2029, the consulting firm said in its Global Entertainment & Media Outlook 2025-29 on Thursday. The growth will also be supported by non-digital categories such as live events.
WHY IT'S IMPORTANT
Economic uncertainty from inflation and shifting trade policies are prompting consumers to cut back on non-essential spending, pressuring entertainment subscriptions, movie outings and digital media.
At this time, advertising is emerging as a significant driver of revenue growth for the industry at-large, PwC said.
BY THE NUMBERS
Digital formats, which accounted for 72% of overall ad revenue in 2024, will rise to 80% in 2029, with new technologies including AI and hyper-personalization expected to drive more end-market uptake, the report said.
Ad revenue from connected TV is expected to rise to $51 billion in 2029, driven by higher digital engagement, PwC said.
The industry is also set to benefit from strong video games revenue, which is forecast to grow to about $300 billion in 2029.
KEY QUOTES
"There's certain general macroeconomic pressures on individuals, families and advertising starts to subsidize a lot of that," 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.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar)
