The global entertainment and media industry is projected to reach $4.2 trillion by 2030, with advertising, streaming, gaming, artificial intelligence and emerging markets expected to drive much of the sector’s growth over the coming years.
A new analysis of forecasts from major research and consulting firms, including PwC, BCG, Deloitte, Omdia, Ampere Analysis, KPMG, McKinsey and Goldman Sachs, shows that the entertainment business is expanding but undergoing significant structural changes.
The research indicates that while overall industry revenues are rising, traditional television, pay-TV and some established media models are facing pressure from streaming platforms, digital advertising and changing consumer behaviour.
PwC’s Global Entertainment & Media Outlook 2026-2030 projects global entertainment and media revenues will reach approximately $4.2 trillion by 2030, representing a compound annual growth rate of about 3.4 per cent.
One of the major developments identified by the forecast is the growing importance of advertising.
Advertising revenue is expected to grow at about 5.6 per cent annually, considerably faster than consumer spending categories, which are projected to grow by around 2 per cent.
Digital advertising is already responsible for a substantial share of global advertising revenue and is expected to account for an even larger proportion in the years ahead.
Retail media, social and mobile video advertising and connected television are among the segments expected to record particularly strong growth.
The changing advertising landscape means entertainment companies are increasingly competing not only for subscribers but also for viewers, advertisers and consumer attention.
Streaming remains one of the biggest forces reshaping the entertainment industry.
Omdia estimates that global online video subscriptions reached approximately 2.24 billion in 2025, following strong growth during the year.
However, the research points to a slowdown ahead.
Global subscription growth is forecast to fall to about 5.6 per cent in 2026, compared with 17.6 per cent growth recorded in 2025.
The slowdown suggests that some mature markets are approaching saturation, forcing streaming companies to focus increasingly on advertising, pricing, content efficiency and revenue per subscriber.
At the same time, online video revenue has overtaken traditional pay-TV revenue, marking another significant shift in the global television market.
Ampere Analysis projects global content investment at about $255 billion in 2026, with streaming platforms accounting for an increasingly significant share.
Streaming companies are expected to spend more than $101 billion on content in 2026, taking their annual investment above the $100 billion threshold for the first time.
The figure represents roughly 40 per cent of total global content investment.
Streaming platforms have also overtaken commercial broadcasters in their contribution to content spending, highlighting the growing financial influence of companies built around digital distribution.
Traditional broadcasters and pay-TV operators, meanwhile, face pressure to maintain content investment while dealing with declining or stagnant revenues.
One of the more striking findings in the research concerns the amount spent on content by major entertainment companies.
According to KPMG’s Money in Motion report, Comcast/NBCUniversal spent about $37 billion on content in 2024, followed by YouTube at $32 billion.
Disney spent approximately $28 billion, Amazon $20 billion and Netflix $17 billion.
The figures challenge the common perception that Netflix is the dominant content spender in the entertainment industry.
YouTube’s estimated $32 billion content-related spending also demonstrates the growing importance of user-generated and creator-driven video within the wider entertainment economy.
For major media companies, the emphasis is increasingly shifting from simply producing more content to understanding which investments generate the strongest audience and financial returns.
Gaming is another major growth area.
BCG’s Video Gaming Report 2026 projects global gaming revenue could reach approximately $350 billion by 2030, representing annual growth of around 6 per cent.
The industry generated roughly $224 billion in 2024, according to the report.
Mobile gaming remains a particularly important component of the market, with mobile in-app purchases approaching $130 billion in 2025.
Cloud gaming is also expected to expand significantly, although from a relatively small base. Revenue in the segment was estimated at about $1.4 billion in 2025 but is projected to reach approximately $18.3 billion by 2030 as connectivity and 5G infrastructure improve.
Artificial intelligence is also becoming increasingly integrated into game development.
The research indicates that about half of game studios now use AI in some aspect of their production workflows.
Deloitte has identified several emerging entertainment formats that could become increasingly important to the industry.
One is the rise of microdramas — short, mobile-first fictional productions designed primarily for consumption on smartphones.
Global revenue from microdrama applications is projected to increase from approximately $3.8 billion in 2025 to $7.8 billion in 2026, while annual viewership is expected to surpass 500 million.
Podcasts and video podcasts are also expanding.
Global podcast and vodcast advertising revenue is projected to reach approximately $5 billion in 2026, while a growing proportion of highly rated podcasts now include video.
The trend demonstrates how the boundaries between television, social media, podcasting and online video are becoming increasingly blurred.
Deloitte’s research also highlights the growing commercial importance of highly engaged entertainment fans.
The survey found that roughly 80 per cent of consumers identify as fans of particular entertainment properties, personalities or communities.
According to the research, fans spend an average of about $71 per month on streaming, compared with $56 among non-fans.
Fans also spend more time consuming entertainment.
For entertainment companies, the figures point towards a business model increasingly focused on building deeper relationships with audiences rather than simply maximising the number of subscribers.
Artificial intelligence is emerging as one of the most disruptive forces in the entertainment sector.
McKinsey has modelled several possible scenarios for AI’s impact on film and television production.
Its analysis estimates that about $10 billion of US original content spending could be addressable by AI by 2030.
In one scenario, approximately $60 billion in revenue could be redistributed within five years of AI reaching mass adoption.
The shift could affect everything from production costs and visual effects to script development, distribution, search and audience discovery.
Open platforms such as YouTube and TikTok could also capture a larger share of viewing time if consumers increasingly shift away from traditional television and established streaming services.
However, copyright disputes, licensing questions and negotiations involving creative workers could influence how quickly AI becomes integrated into mainstream production.
The music industry is also expected to experience substantial long-term growth.
Goldman Sachs has projected global music industry revenues could rise from approximately $40.5 billion in 2024 to nearly $200 billion by 2035.
The research estimates the market could reach around $110.8 billion by 2030.
Streaming remains central to the expansion, with global paid streaming subscriptions continuing to rise.
Emerging markets are expected to account for an increasing share of new subscribers, creating opportunities for record labels, streaming services, artists, distributors and technology companies.
Goldman Sachs also expects AI-generated music to become a growing commercial segment, although copyright, licensing and creator compensation remain important issues.
The next phase of entertainment growth is not expected to be concentrated entirely in North America and Western Europe.
Research cited in the industry outlook points to India, the Middle East and parts of the Asia-Pacific region as some of the fastest-growing entertainment markets.
India’s media and entertainment market is projected to grow at approximately 12.6 per cent annually through 2033, driven by mobile consumption, 5G connectivity and streaming.
The UAE is projected to record growth of about 11.08 per cent through 2031, while the broader Middle East market is forecast to expand at roughly 9.66 per cent.
Saudi Arabia’s investment in entertainment infrastructure under its Vision 2030 programme is contributing to the region’s expansion through new cinemas, live events, venues and digital entertainment platforms.
The figures underline the increasing importance of emerging markets to global entertainment companies looking for new audiences.
Despite the overall growth forecast, the outlook is not uniformly positive across the industry.
Pay-TV revenues are declining as consumers migrate towards streaming and other digital platforms.
At the same time, streaming subscriber growth is slowing in mature markets, while consumers are becoming increasingly sensitive to subscription price increases.
The industry is therefore moving towards a more complicated model in which companies must balance subscription revenue, advertising, content costs and consumer retention.
The changing industry structure is also expected to create opportunities for mergers, acquisitions and investment.
AlixPartners projects that media and entertainment M&A deal value could exceed $80 billion in 2026.
Rather than being dominated exclusively by major media mergers, the market is expected to see significant activity involving smaller technology companies, AI businesses and specialist entertainment infrastructure providers.
Private capital is also showing increasing interest in technologies that support content production, distribution and monetisation.
The forecasts from the major research firms point to an entertainment industry that is growing but becoming increasingly fragmented.
Streaming is expanding while traditional television declines. Advertising is becoming more important. Gaming is moving further into the mainstream entertainment economy. AI is beginning to reshape production and distribution, while emerging markets are becoming increasingly important sources of new audiences and revenue.
The headline projection of a $4.2 trillion global entertainment and media market by 2030 therefore tells only part of the story.
The more significant change may be the redistribution of revenue between platforms, creators, advertisers, technology companies and traditional media businesses.
For entertainment companies, producers, investors and advertisers, the coming years are likely to be defined not simply by industry growth but by who captures that growth and how successfully businesses adapt to changing consumer behaviour and technology.
