PwC predicts major entertainment and media growth
The entertainment and media sector is expected to grow by a whopping $3.4 trillion in the next four years, according to PwC’s Global E&M Outlook 2024-2028.
Large new revenue pools forming in advertising, streaming, and emerging markets can account for the huge boom, the data suggests.
In the report, PwC states: “In aggregate, the industry’s ship seems to be sailing through calm seas on an even keel. But the surface is continually roiled by cresting waves and deep troughs, with dangerous shoals and reefs lurking everywhere. Disruption, presenting opportunities and risks, continues to break over the sector.
“Linear value chains are disaggregating as we move into a world dominated by digital ecosystems. The content boom driven by rapid streaming growth has come to a halt.”
Generative AI promises efficiency and productivity gains, transforming business operations across various industries. However, this also brings widespread uncertainty, the report suggests.
The data also predicts that by 2028, an additional US$597 billion in revenues will be available to entertainment and media sector industry participants, compared with 2023. The key to capturing a share of these expanding revenue pools hinges on business model reinvention.
“BMR goes beyond tinkering around the edges to boost margins by a few basis points or seek incremental growth. Rather, the necessity is to reimagine how your company creates, delivers and captures value,” the report states.
“This involves fundamental changes to how businesses make money, serve customers, and address the geographic and business sectors that are growing most rapidly.”
Furthermore, of the three major categories—consumer spending, connectivity, and advertising — consumer spending is both the smallest and slowest growing, the data reveals. The connectivity category, what people pay for fixed and mobile services, topped US$1.1 trillion in 2023.
Global internet advertising revenues in 2028 are predicted to nearly double the 2021 total, with CTV projected to go from US$20.5 billion in 2023 to US$41.2 billion. In addition, spending on connected in-stream TV advertising will double.
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