Global entertainment and media industry, spurred by advertising and digital, to hit $2.8 trillion market in 2027 even as growth rate decelerates: PwC Global Entertainment & Media Outlook

• Entertainment and media (E&M) revenues will grow every year through 2027 – creating a US$2.8 trillion industry – but the rate of growth will decline every year
• Advertising revenue to approach $1 trillion in 2027 and become the largest E&M sector, even as consumer spending loses steam and competitive landscape shifts
• Digital will account for nearly three quarters of E&M revenue by 2027, up from 55.2% in 2018
• Gaming sector remains a key driver of industry growth – particularly in Asia-Pacific – with global gaming revenues to hit $312B by 2027
• Live events to return to pre-pandemic highs in 2024 and outperform E&M industry at-large
• Global internet access to approach $1 trillion market as annual data consumption triples between 2022 and 2027

LONDON, 27 June 2023 – For the global entertainment & media (E&M) industry, 2022 marked an important inflection point. Total industry revenue rose 5.4% in 2022 to US$2.32 trillion – a sharp deceleration from the 10.6% growth rate in 2021 when economies and industries were recovering from the onset of the COVID-19 pandemic.

PwC’s Global Entertainment & Media Outlook 2023-2027, which covers 13 sectors and 53 countries and territories, also finds that while the rate of revenue growth is expected to decline in each of the next five years through 2027 – in part due to weakening consumer spending – E&M will grow to become a US$2.8 trillion industry by 2027.

The Outlook paints a picture of an industry that is becoming more digital and increasingly dominated by advertising. By 2027, digital’s share of E&M revenue will account for nearly three-quarters (70.8%) of total industry revenue, up from 55.2% in 2018. Meanwhile, global internet access is expected to approach a $1 trillion market as data consumption nearly triples between 2022 and 2027, from 3.4mn petabytes (PB) to 9.7mn PB.

Regionally, the US will continue to remain the largest global E&M market (growing from US$819 billion in 2022 to US$943 billion in 2027), followed by China (growing from $388 billion to $480 billion). China is forecast to grow at a 4.3% compounded annual growth rate (CAGR), compared with a 2.9% CAGR for the US.

Amid a broad-based resetting of expectations and flagging consumer strength, companies are seeking growth in sectoral hotspots (especially advertising and gaming), emerging technologies such as generative AI, and regions with outsized growth prospects like Asia.

Advertising revenues to approach $1 trillion as competitive landscape shifts

Advertising remains a key growth sector and is expected to approach US$1 trillion in 2027. At US$952.6 billion in 2027, it will be the largest of the three broad sectors the Outlook tracks: consumer, advertising, internet access. While advertising dollars are growing, they’re getting spread more thinly as more market players – including e-commerce sites, video games and streaming platforms – take market share from large social media and search platform incumbents.

Werner Ballhaus, Global Entertainment & Media Industry Leader, PwC Germany, said: