The global entertainment and media industry experienced growth in 2023 despite economic challenges, technological disruptions, and increased competition. According to PwC, total revenues in the industry rose by 5% to $2.8 trillion, outpacing the global economic growth rate of 3.2% cited by the International Monetary Fund.
PwC projects that the entertainment and media industry will continue to grow, reaching $3.4 trillion by 2028. The gaming sector, in particular, saw a growth rate of 4.3% in 2023, with total video game and esports revenue expected to increase by 8.2% in 2024. Gaming is identified as one of the major opportunities for growth within the industry.
Although gaming revenue has historically been driven by subscriptions and game purchases, advertising is becoming increasingly prominent in the sector. Social/casual gaming revenue narrowly exceeded in-app games advertising revenue in 2023, signaling a shift towards ad-based revenue models in the gaming industry.
Gaming is projected to be a key driver of revenue growth, with revenue expected to exceed $300 billion by 2028. The Asia Pacific region remains the largest market for gaming, accounting for nearly half of the global total revenue. Countries like Indonesia and Pakistan are identified as high-growth markets for gaming, with strong forecasts for the future.
In addition to gaming, advertising is identified as a significant driver of revenue growth across the entertainment and media industry. With global advertising revenue expected to grow at a 6.7% compound annual growth rate through 2028, companies are exploring new ways to leverage advertising to reach consumers effectively.
Overall, the industry is undergoing a period of transformation and reinvention, driven by technological advancements like Generative AI. This technology is expected to play a key role in content creation, advertising, and revenue generation, offering new opportunities for companies in the entertainment and media space.
As the industry continues to evolve, companies are focusing on rethinking their business models, embracing new technologies, and exploring high-growth geographies and segments to drive future growth. The intersection of technology, content, and consumer engagement will be crucial in determining the success of companies in the rapidly changing entertainment and media landscape.
