Entertainment revenue is set to hit the $3 trillion mark by 2028 with people getting more options to access content at their convenience.
Additionally, global media revenue is projected to grow by an average of 3.9% annually over the next five years according to a new report from PricewaterhouseCoopers LLP (PwC).
According to PwC Surges, online advertising and live events primarily drive the growth in entertainment and media revenues.
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PwC forecasts that ad sales will reach $1 trillion by 2026, contributing significantly to more than half of the industry’s total revenue growth during this period.
Furthermore, the report highlights that live entertainment, including sports and concerts, is also gaining significant momentum.
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Post Covid recovery revenue
Following the pandemic-induced slowdown, global tours of pop stars like Taylor Swift and Coldplay, along with the opening of the Sphere in Las Vegas, have boosted live music sales by 26% in 2023.
The gaming sector is expected to remain one of the fastest-growing areas within the entertainment industry.
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Projections indicate gaming revenue will surpass $300 billion by 2028. This highlights the sector’s robust expansion and increasing consumer engagement.
Moreover, global cinema revenue is on track to recover from the downturn caused by COVID-19.
Cinema expectations are aimed to exceed the pre-pandemic levels of 2019 by 2026. This rebound indicates a resurgence in movie-going and a revitalized cinema industry.
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Streaming shifts income streams
In the streaming industry, companies facing intensified competition for subscribers are anticipated to rely more heavily on advertising.
The market is heavily segmented as streaming platforms push to attract subscribers through exclusive releases or avoidance of ads on their streaming platforms.
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By 2028, ad-based subscriptions are expected to constitute about 28% of total streaming revenue, reflecting a shift towards hybrid monetization models to attract and retain viewers.
In summary, PwC’s report underscores a positive outlook for the global entertainment and media industry.
It is undeniable that the substantial growth is driven by online advertising, live events, a surge of stability in gaming, and a resilient recovery in cinema and diversified streaming services.
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