Global Entertainment and Media Revenue to Reach $3.5tn by 2029, Driven by AI-Driven Advertising and Live Events.

PwC predicts global entertainment and media revenues to reach $3.5 trillion by 2029, driven by a 3.7% compound annual growth rate. AI-driven advertising is expected to play a key role, with digital advertising formats accounting for 80% of ad revenue by 2029. Connected TV ad revenue is forecast to reach $51 billion, and global video games sales are set to climb to $300 billion by 2029.

PwC's latest Global Entertainment & Media Outlook 2025-29 report reveals that global entertainment and media (E&M) revenues are projected to reach $3.5 trillion by 2029, driven by a 3.7% compound annual growth rate (CAGR). The report highlights the pivotal role of AI-driven advertising in this growth trajectory.

According to the report, digital advertising formats are expected to account for 80% of ad revenue by 2029, underscoring the transformative impact of AI on advertising models. Connected TV (CTV) ad revenue is forecast to reach $51 billion by 2029, reflecting a significant shift in consumer behavior and media consumption patterns. This growth is primarily driven by AI-assisted hyper-personalization, which tailors content and ads based on individual viewing behavior and preferences [2].

The report also notes that global video games sales are set to climb to $300 billion by 2029, surpassing the combined revenues of the movie and music industries. This growth is driven by the increasing popularity of video games, particularly among younger audiences, and the advancements in gaming technology.

Non-digital categories, such as live music, cinema, and events, continue to lead consumer spending, accounting for 61% of sector spending in 2024. However, the growth in digital advertising formats, particularly AI-driven hyper-personalization, is expected to outpace consumer spending, growing at a CAGR of 6.1% compared to 2% for consumer spending [3].

The report also highlights the strong performance of the US E&M market, which is forecast to grow at a CAGR of 3.8% until 2029, leading the global market. In contrast, the Chinese E&M market is expected to grow at a CAGR of 6.1%, driven primarily by its internet advertising segment, which is forecast to grow at a CAGR of 8.9% [2].

In conclusion, the PwC report underscores the transformative impact of AI on the global entertainment and media industry. The shift towards AI-driven advertising, particularly in digital formats and connected TV, is set to drive significant growth in the industry over the next five years.

References:
[1] https://www.ainvest.com/news/relx-ai-driven-transformation-catalyst-sustained-profit-revenue-growth-2025-2507/
[2] https://bestmediainfo.com/insights/ctv-ad-revenue-to-reach-51-billion-by-2029-equaling-45-of-traditional-tv-ad-spend-9531940
[3] https://sg.finance.yahoo.com/news/global-entertainment-media-industry-revenues-060000378.html