This illustration by Dado Ruvic, shared by REUTERS, highlights key terms related to artificial intelligence.
The world’s entertainment and media industry is gearing up for a massive boost, and the key driver might surprise you—artificial intelligence. According to PwC’s latest Global Entertainment & Media Outlook 2025-29, AI-powered advertising is expected to push global industry revenue to a staggering $3.5 trillion by 2029.
This growth comes despite economic headwinds like inflation and shifting global trade patterns, which have led many people to tighten their wallets. As consumers rethink spending on non-essentials such as streaming subscriptions, movie tickets, and online content, advertising—especially digital—has stepped in to fuel the industry's momentum.
What’s Fueling This Surge?
PwC predicts the entertainment and media industry will grow at a steady annual rate of 3.7% over the next five years. Interestingly, this isn’t just about Netflix or YouTube—live events and other traditional formats are also expected to play a role in the rise.
But the real star of the show is digital advertising. By 2024, digital platforms will already make up 72% of total ad revenue. That figure is expected to climb to 80% by 2029, driven by AI and next-level personalization. These tools allow advertisers to tailor content in ways never seen before, making ads more relevant and engaging—and more profitable.
Connected TVs and Gaming: The Big Earners
Connected TVs are also shaping the future of advertising. With more people streaming content at home, ad revenue from connected TV platforms is projected to hit $51 billion by 2029.
Meanwhile, the gaming world continues to dominate the digital landscape. PwC anticipates global revenue from video games will swell to nearly $300 billion over the same period. That growth highlights just how much audiences are shifting their attention to immersive, interactive entertainment.
Why It Matters Now
In uncertain economic times, industries that once relied on direct consumer spending are rethinking their models. Bart Spiegel, PwC U.S.’s global entertainment and media leader, explained that advertisers are stepping in to ease the financial burden on consumers. This shift makes entertainment more accessible while keeping revenue flowing into media companies.
He also emphasized the need for media brands to stay flexible and forward-thinking. “The industry has always been quick to adopt new technologies,” Spiegel noted. “But moving ahead, success will depend on how well companies adapt to changing trends and deliver creative, personalized experiences.”
As AI continues to reshape how people watch, listen, play, and interact, the industry’s growth story will likely be one of adaptability, innovation, and smart use of tech.
