ArdorComm Media News Network
July 30, 2025
According to PwC’s latest Global Entertainment & Media Outlook 2025–29, the worldwide media and entertainment (M&E) sector is set to hit $3.5 trillion in revenues by 2029, up from $3 trillion in 2024. The industry is projected to grow at a compound annual growth rate (CAGR) of 3.7%, outpacing global economic growth but still trailing the more aggressive expansion seen before the pandemic.
Advertising to Power Industry Expansion
A major driver behind this growth will be advertising, which is forecasted to rise at a healthy 6.1% CAGR. As traditional subscription-based and paid content models experience saturation—especially in more developed markets—advertising is expected to take centre stage, increasingly fueled by digital innovations and AI.
Digital ad formats currently account for 72% of all advertising revenue and are projected to rise to 80% by 2029. This shift is being bolstered by new technologies like AI-driven targeting and hyper-personalisation, especially in areas such as retail search advertising and in-game ads.
Connected TV and AI-Led Disruption
One of the standout trends highlighted in the report is the rapid transformation in the connected TV advertising space. In 2020, connected TV accounted for just 5.9% of traditional broadcast TV ad revenues. By 2024, this figure surged to 22%, and PwC estimates that by 2029, it will climb to $51 billion—equivalent to 45% of traditional broadcast ad revenue. The fusion of AI and personalised digital content delivery is expected to accelerate this trend further.
Connectivity Still Dominates, but Gap Narrows
Despite the advertising boom, connectivity remains the M&E industry’s largest revenue contributor. This segment is forecasted to generate $1.3 trillion by 2029, driven largely by mobile internet services. However, with the faster growth of digital ad revenues, the gap between connectivity and advertising spend is likely to narrow in the coming years.
Strong Growth in Gaming and Cinema
Video gaming is another sector poised for significant expansion. Revenues from the gaming industry are expected to reach close to $300 billion by 2029, growing at a CAGR of 5.7%. Meanwhile, the global box office is projected to climb from $33 billion in 2024 to $41.5 billion in 2029, signaling a rebound in theatrical entertainment.
A Changing Landscape Ahead
While macroeconomic headwinds and tight consumer spending may temper growth in some areas, PwC’s outlook suggests that innovation, digital transformation, and evolving consumer habits—particularly in ad-supported models—will redefine the M&E industry by 2029.
Source: PwC